Answer:
Single-layer taxation
Explanation:
Limited liability companies and S corporations are able to pass through their income as the owner's income. "LLC and S corporations" are entities, unlike the C corporation.
Pass-through entities have a taxation advantage over non- pass-through entities. In tax computation, a pass-through entity passes its income or losses as those of its owners; hence the entity will not be subject to income tax. The business profits are treated as income to the owners, who will pay individual tax income. LLC and S corporation have only one layer of taxation.
A C corporation is subject to taxation as an independent entity. The directors have to file corporate tax returns on behalf of the business based on the company profits. The business profits are distributed to the shareholder as dividends. The shareholders have to pay tax on the dividend received as part of their income tax. The shareholders are double-taxed, as the business owners- corporate tax and as individuals - income tax. Double layer taxation.
Answer:
In a capitalistic society, the production and pricing of goods and services are largely determined by supply and demand the free market but some government regulation and oversight may occur. In contrast, a free market system is ruled entirely by demand and supply, and there is little or no government regulation.
Explanation:
Answer: Sell government bonds and raise the discount rate
Explanation:
Fed uses open market operations for controlling the money supply in the economy. If fed wants to create a tight money market then it should sell the government securities to the public which will reduce the money supply in the economy. It is known as contractionary monetary policy.
Discount rate is defined as the interest rate on the discounted loan. If there is an increase in the discount rate then it will be more expensive for the banks to borrow from Fed and hence they borrow less. This will decrease the lending capacity of the banks which reduces the money supply in an economy.
Therefore, Sell government bonds and raise the discount rate are the best ways to contract the money supply.
Answer: True
Explanation:
When new shares are issued, the preemptive right helps maintain the position of the shareholder. The preemptive right is vital to shareholders as it protects them against the dilution of ownership interests.
Also, it gives current stockholders the right to purchase any new shares issued by the firm, so as to maintain their level of ownership.
Answer:
Weighted average contribution margin ratio= $632.5
Explanation:
Giving the following information:
Suits:
Selling price= $1,000
Unitary variable cost= $300
Sales participation= 90%
Ties:
Selling price= $100
Unitary variable cost= $75
Sales participation= 10%
To calculate the weighted contribution ratio, we need to use the following formula:
Weighted average contribution margin ratio= weighted average selling price - weighted average unitary varialble cost
weighted average selling price= (1,000*0.9) + (100*0.1)= 910
weighted average unitary varialble cost= (300*0.9) + (75*0.1)= 277.5
Weighted average contribution margin ratio= 910 - 277.5= $632.5