Answer:
A) True
Explanation:
A corporation is a distinct and separate legal entity from its owners. It enjoys commercials' rights and has obligations, just like a person does. Corporations transact business, can enter a contract, borrow money, sue, or be sued.
The most salient feature of a corporation is that its owners have limited liability. It means that the owners of a corporation are liable for its obligation up to the extent of their capital contribution. If a corporation is unable to meet its debts, the personal properties of its owners can not be attached to the liabilities.
Many corporations outlive their founders. The most famous companies were incorporated decades ago. A corporation is often described as a legal person. Its lifespan is not dependent on the lives of its owners.
The answer is diffusion of innovation. This type of theory
or process has the aim of having to influence other people in regards with the
ideas that they have formulated in which are new. These ideas are being spread
out with the use of innovations.
Answer:
Assets = Liabilities + Stockholders' Equity = $206,670
Explanation:
Note: See the attached excel file for the analysis of the tabular analysis of the effect of each transaction on the accounting equation.
From the attached excel file, we have:
Assets = = – $172,670 + 68,620 + $310,720 = $206,670
Liabilities = $68,620
Stockholders' Equity = $138,050
Liabilities + Stockholders' Equity = $68,620 + $138,050 = $206,670
Therefore, we have:
Assets = Liabilities + Stockholders' Equity = $206,670
Answer:
B. it ignores the firm's demand curve.
Explanation:
A: With the help of average cost pricing, the fixed cost can quickly estimate. Therefore, it cannot be the answer.
C: The average cost must consider the effect of variable cost. Therefore, it is also the wrong statement.
D: It is easy to estimate profit if there is an average cost pricing.
B: average-cost pricing always ignores the demand curve because it is a "U" shaped curve. Because after a certain level of product selling, the average cost is increasing. On the other hand, demand curve is such that if the price decreases, the quantity demanded increases. Therefore, it is a downward slopping curve. Hence, it is understood that, average-cost pricing ignores demand curve.