Answer:
D. All of these are differences between the two type of business
Explanation:
The sole proprietorship is a business organzation owned, controlled and organized by one person.
Features of sole proprietorship
1. It is owned and controlled by one person
2. The owners is personally liable for all business debt.
3. Owners can establish a sole proprietorship instantly, easily, and inexpensively.
4. Sole proprietorships rarely survive the death of their owners.
5. Capital is limited since the business owner is the only provider of capital.
Features of Corporation
1. It protect its owners from personal liability for corporate debts and obligations.
2.A corporation has perpetual life, that is, when shareholders pass on or leave a corporation, they can transfer their shares to others who can continue a corporation's business
3. Corporation is owned by its shareholders and managed by its board of directors.
4. Corporations can raise capital more easily through the sale of securities.
Answer: Annual rate of return = 24%.
Explanation:
Given that,
oil well will increase annual revenues by $130,000 and will increase annual expenses by $70,000 including depreciation
Cost of oil well = $490,000
$10,000 salvage value at the end of its 10-year useful life
Net Income = Annual revenue - annual expenses
= 130000 - 70000
= $60000
Average investment = 
= $250000
∴ Annual rate of return = 
= 
= 24%
Answer:
$18,700
Explanation:
In this question, we applied the accounting equation which is presented below:
Total assets = Total liabilities + shareholder equity
where,
Total assets = Current assets + fixed assets
= $5,900 + $21,200
= $27,100
And, the Total liabilities is $8,400
So, the shareholders' equity would be
= $27,100 - $8,400
= $18,700
Answer: $65,075.85
Explanation:
Given that the cash flow should be constant, it will be an annuity.
The initial investment will be the present value of this annuity.
Present value of annuity = Annuity * ( 1 - (1 + rate)^-number of periods) / rate
460,100 = Annuity * ( 1 - (1 + 8.2%) ⁻¹¹) / 8.2%
460,100 = Annuity * 7.070211525
Annuity = 460,100 / 7.070211525
= $65,075.85
Answer:
Sheila letting Susan keep $1,000 without holding her liable for not completing the job is an example of a WAIVER.
Explanation:
A waiver is a legal intention or demonstration of a party in a contract to voluntarily relinquish their rights or claims in a contract. This is done without holding the other party (especially when they default in meeting the terms of the contract) liable for damages.
The party that voluntarily relinquishes their rights will usually not pursue any legal action against the defaulting party.
Therefore the scenario above is an example of a waiver, since Sheila has decided not to enforce the contract and has also allowed Susan keep part of the money.
