Answer:
- Corporation
Explanation:
At least two people are required to form a corporation. The owners of a corporation are treated as separate entities from the business. The owners, also known as shareholders, enjoy limited liabilities to the debts of the corporation. In case of a liquidation, they cannot lose more than their capital contribution.
A sole proprietorship is owned by one person, but a partnership requires at least two people to form. The owners of sole proprietorships and partnerships have unlimited liabilities to the debts of their businesses. Should the businesses fail in meeting their obligations, owners' personal assets can be used to settle the outstanding debts.
Answer:
B. contractionary fiscal policy
Explanation:
The government influences economic direction through fiscal policy measures of increasing or decreasing its expenditure and taxation. Therefore, fiscal policies involve the government's actions of adjusting its spending and taxation to achieve desired economic objectives.
Fiscal policies can either be contractionary or expansionary. Contractionary measures are applied to control rising inflation and moderate the rate of growth. These policies aim at reducing liquidity in the market, thereby achieving stable prices. A reduction in government spending and an increase in taxation reduces liquidity or money circulation.
Answer:
So the depreciation in year 1 is $95,000
Explanation:
Depreciation is the accounting method that is used to allocate cost of an asset over its useful life. It is assumed that an asset losses values over a period and the salvage or terminal value is the value of the good after its useful life has ended.
Straight line method of depreciation assumes equal allocation of depreciation expense over the useful life of an asset.
In the given the asset value is $570,000 and the terminal value is $0
Using the formula
Depreciation= (Value of asset- Salvage value)/Number of useful years
Depreciation= (570,000-0)/6
Depreciation= $95,000 paid equally for 6 years
So the depreciation in year 1 is $95,000
Strategy Map - A strategy map is very crucial for an organization to accomplish its objectives. It allows businesses to devise and implement a good company strategy, find gaps in the strategy, describe the strategy to employees, and test the strategy to allow for adjustments if necessary.
Answer: True
Explanation:
The Statement of Cash flows is prepared to show the cash transactions of a company and only cash. The effect of anything non cash is not shown.
Depreciation is a non-cash expense which means that it reduces the net income without actually reducing the cash to the company. It would therefore be added back to the cash balance of the company so as to reflect that it did not reduce cash. The addition will be in the operating activities of the Statement of Cashflows.
