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Masteriza [31]
3 years ago
6

Brian is the 99% shareholder, president, and director of Arapine Corp. He frequently uses the corporation credit card for his pe

rsonal expenses. If Arapine is insolvent and unable to pay its debts, and the corporation’s creditors sue Brian personally, what is the likely result?
Business
1 answer:
Alika [10]3 years ago
6 0

Answer: (C) Brian is liable because the court will pierce the corporate veil.

Explanation:

The phrase "PIERCING THE CORPORATE VEIL" is used to describe a situation where a Court decides to hold Corporate Shareholders and/or LLC Owners personally liable for the liabilities of a corporation.

When individuals act in a way that does not separate them from the company (dissolving this 'veil'), the Court looks upon this seriously and treats it in kind. Some instances of this happening are, failure to keep business and personal funds separate and diverting business assets for personal use without proper documentation as Brian seems to have done.

For this reason, the Court will very much likely Pierce the veil.

If you need any clarification do react or comment.

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Stop and Go has a 4.5 percent profit margin and a 15 percent dividend payout ratio. The total asset turnover is 1.6 and the debt
AVprozaik [17]

Answer:

10.85 percent

Explanation:

Return on equity = 0.045 × 1.60 ×(1 + 0.60) = 0.1152

Sustainable growth = [0.1152 × (1 - 0.15)]/{1 - [.1152 × (1 - 0.15)]} = 10.85 percent

The sustainable growth rate is the rate of growth that a company can expect to see in the long term. Often referred to as G, the sustainable growth rate can be calculated by multiplying a company’s earnings retention rate by its return on equity. The growth rate can be calculated on a historical basis and averaged in order to determine the company’s average growth rate since its inception.

The sustainable growth rate is an indicator of what stage a company is in, during its life cycle. Understanding where a company is in its life cycle is important.

3 0
3 years ago
Which statement about stakeholders is BEST?
olasank [31]

Answer:

2. Stakeholders can potentially impact project development.

Explanation:

Stakeholders -

It refers to a party , which is interested in a company and the business can affect the stakeholder or the stakeholder can affect the business , is referred to as a stakeholder.

The type of primary stakeholder are , the suppliers , customers , employees and the investors.

The stakeholder have the capability to affect any project .

Hence , from the question,

The correct option is 2.

4 0
3 years ago
Successful marketing focuses solely on selling more products. continues long after the product is purchased. ends once the produ
PSYCHO15rus [73]

<u>Answer:</u>

<em>The most effective marketing strategies are those that are targeted toward a specific audience.</em>

<u>Explanation:</u>

The most effective marketing strategies are those that are targeted toward a specific audience,focused on key benefits based on the audience's point of view and interests, and delivered at an appropriate time, when the audience is most likely to be attentive to and interested in the message being delivered.

Successful marketing focuses solely on selling more products. continues long after the product is purchased. ends once the product is sold to consumers. includes preproduction through selling the product.

6 0
3 years ago
Jazz Corporation owns 50% of the Williams Corp. Stock. Williams distributed a $10,000 dividend to Jazz Corporation. Jazz Corp.'s
Elden [556K]

Answer:

$6,500

Explanation:

Calculation for the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp

Based on the information given we were told that the Jazz's Corporation owns part of Williams Corp. stock which is 50% in which Williams Corp. stock distributed the amount of $10,000 dividend to Jazz Corporation which means that Jazz Corporation share in Williams stock is higher than 20% and as well lower than 80% based on this Jazz Corp.'s will be entitled to dividend received deduction of 65% calculated as:

Dividends received deduction =$10,000 × 65%

Dividends received deduction=$6,500

Therefore the amount of Jazz's dividends received deduction on the dividend it received from Williams Corp will be $6,500

7 0
3 years ago
Which is the primary source of revenue for the federal government
soldier1979 [14.2K]

The three main sources of federal tax revenue are individual income taxes, payroll taxes, and corporate income taxes. Other sources of tax revenue include excise taxes, the estate tax, and other taxes and fees.

8 0
3 years ago
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