1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kiruha [24]
3 years ago
8

Relaxant Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the

following statements is CORRECT?
a.Relaxant’s shareholders (the ex-partners) will now be exposed to less liability.
b.The company will probably be subject to fewer regulations and required disclosures.
c.Assuming the firm is profitable, none of its income will be subject to federal income taxes.
Business
1 answer:
Sliva [168]3 years ago
4 0

Answer:

a.Relaxant’s shareholders (the ex-partners) will now be exposed to less liability.

Explanation:

Legally, a corporation is a distinct entity separate from its owners. It has commercial rights to transact businesses, enter into contracts, and own properties. A corporation is a legal person and is subject to taxation; it can sue or be sued.

One distinctive aspect of a corporation is that its owners have limited liability to the debts of the business. If the company is unable to meet its obligations, the personal properties of owners cannot be attached to the debts. The owners of Relaxant Inc. will be exposed to less liability when they are shareholders as compared to when they were partners.  The liability of an individual shareholder is limited to the amount of their capital contribution

You might be interested in
A company had the following items and amounts in its unadjusted trial balance as of December 31 of the current year: (3 points)
Lostsunrise [7]

Answer:

Particulars                                   Amount

Provision for uncollectible         $6,080 ($76000*8%)

Less: Provision already made   <u>$1,000</u>

Provision to be made                <u>$5,080</u>

Date       Particulars                                                      Debit     Credit

31-Dec    Bad Debts                                                    $5,080

                    To Allowance for Doubtful Accounts                    $5,080

               (Being the adjusting entry to estimate bad debts)

4 0
3 years ago
Of money's three functions, the one that distinguishes money from other assets is its function as a a. store of value. b. unit o
tiny-mole [99]

The one that distinguishes money from the other assets is that it is used as a medium of exchange

Explanation:

Money is one of the most important factor in our day to day lives it has become as defining the country's economic standard and it is widely accepted all over the world

Money is used as the medium of exchange because we can buy all the necessary things using the money and can use it as a medium to exchange of goods and services. There are also other important functions as the method of comparing the values

4 0
2 years ago
To get an idea of whether you should continue to run a search network campaign on search partner sites, you can:
ziro4ka [17]
You can separate or group the campaign's data by network and evaluate its performance on search partner sites
5 0
3 years ago
If management wants the most accurate product cost, which of the following costing methods should be used? a. Volume-based costi
Fynjy0 [20]

<u>1. If management wants the most accurate product cost, which of the following costing methods should be used?</u>

Answer:

c. Activity-based costing

Explanation:

In activity based costing, You only assign cost to a certain products and services based on your actual consumption. This will include indirect cost that might be overlooked by other from of costing methods.

For example, other type of costing might only account the total material or price of the machines when calculating the total cost of creating product. As a matter of fact, this will undervalue the total cost.

You need to calculate the expense that is not directly involved in the production but still necessary for the operation (such as the cost of fixing broken parts,  the cost of daily maintenance, etc). All of these things will be included in activity-based costing.

<u />

<u>2. Which costing method tends to overstate the cost of high-volume products? </u>

Answer:

A. traditional volume based accounting

Explanation

Traditional volume based costing  will calculate all overhead costs (such as salary paid per hour to employees)  and include it to the overall cost of the production without any additional adjustment.

This will cause an overstate in the cost of high-volume products Because longer hours of work does not necessarily translate to proportionate increase in productivity.,

3. Disadvantages of activity-based costing include

Answer:

-It is not acceptable under GAAP for external reporting.

-It can be costly to implement.

Explanation:

GAAP does not accept activity-based costing becasue it overlooked  Organization-sustaining costs that will exist regardless of how much goods the company produce. (For example  Cost of factory security, Cost of electricity for heating and air conditioning and  office administration rent).

Activity based costing can be costly because it need a more precise evaluation of their indirect cost. Which means that they need to hire more experts to specifically pay attention to indirect cost which often time untraceable by common employees.

5 0
3 years ago
The unemployment due to changes in the types of skills employers require is called
Rzqust [24]
Answer: "structural unemployment".
_______________________________________
6 0
3 years ago
Read 2 more answers
Other questions:
  • ________ headings are self-contained, which means that readers can skim through just the headings and subheadings and understand
    8·1 answer
  • Suppose that the yield curve shows that the one year bond yield is 3 percent, the two year bond is 4 percent, and the three year
    6·1 answer
  • What is the major difference between the unadjusted trial balance and the adjusted trial balance?
    14·2 answers
  • Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0
    15·1 answer
  • Receivables might be sold to
    10·1 answer
  • Compare a stock insurer to a mutual insurer with respect to each of the following: a. Parties who legally own the company b. Rig
    9·1 answer
  • Which best describes the pathway of each individual
    9·2 answers
  • The Beauty Beyond Words Salon uses an activity-based costing system in its beauty salon to determine the cost of services. The s
    8·1 answer
  • Bugle's Bagel Bakery is investigating the purchase of a new bagel making machine. This machine would provide an annual operating
    15·1 answer
  • g Money is best defined as whatever serves society in three functions: medium of exchange, store of value, and unit of account.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!