Answer:
RE break point = $24500
Explanation:
21,000 net income
30% OF Earnings as dividends
21,000 x 30% = 6,300 dividends
Retained Earnings (assuming no previous beginning value)
21,000 - 6,300 = 14,700
RE break point = 14,700/0.6 = 24500
What does the $24,500 mean?
This mean that the company can raise financing for this ammount without changing their capital structure (60% equity 40% debt)
If the company wants to finance for more, it will need to raise new shares or chance their capital structure, and therefore the WACC will change
A recession is when the inflation rate is low.. prices are falling dramatically in the market
Answer:
<u>c. exposing himself to unlimited personal liability.</u>
Explanation:
One major characteristic of sole proprietorship being the individual is sole recipient of profits and sole bearer of all risks and liabilities.
A sole proprietor bears unlimited liability in the sense that, in case of bankruptcy, the proprietor's personal assets can be taken away to repay debts owed by him.
Though a proprietor also remains the sole recipient of all gains, similarly the proprietor is also exposed to unlimited risk.
Thus, the correct option is, c. exposing himself to unlimited personal liability .
Answer:
$189,000
Explanation:
The computation of total expense with regards to this payroll is shown below:-
Total expense = Salaries and wages earned by employees + Employer's portion of FICA taxes
= $180,000 + $9,000
= $189,000
Therefore for computing the total expenses with regards to this payroll we simply applied the above formula and we ignore all other values as they are not relevant.
When compared to the country of origin principle, the country of reception approach to jurisdiction over internet transactions requires business managers to have more knowledge of the laws of other countries.
<h3>What is the significance of country of origin principle?</h3>
The country of origin principle is an important feature of leading parts of Union law. It is also known as<u> home country control, </u><u>country</u><u> of </u><u>origin</u><u> rule</u>, and <u>country of </u><u>origin</u><u> </u><u>principle</u><u>.</u>
The country of origin principle mainly aims to ensure the effective protection of the public interest in the country of origin.
Basically, the country of origin principle has the main purpose to vest exclusive jurisdiction to regulate in one Member State only.
Learn more about the country of origin principle here:-
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