Answer:
yes, there is no separation between the administration and ownership in a partnership.
the partnership contract stipulates which partners have the decision making ability and which partners don't. We cannot say specifically that limited partners have no say in decision making.
Moreover, the control of the partnership is not based on the amount invested like in corporations. that too is based on the contract. however, in practice, yes if you have more money invested in the business, you have more influence.
Explanation:
Answer: A. As Expenses
B. No treatment.
Explanation:
A. The $100,000 was not structured and a loan so it will be accounted for as EXPENSES. This means that it will be deducted from the Income for the year from Calhoun's books.
B. A C Corporation is by definition taxed SEPARATELY from it's owners in the United States of America. Seeing as both Corporations were C Corporations, Jonathan as the owner of both companies need not worry about how he should treat the $100,000 payment as he will not ne taxed on it.
Answer: E. Subsidy cut-offs can be determined on the basis of income for the preceding year.
Explanation:
Since Thomas counters Rita's point stating that during the initial part of the season, subsidies are needed. On the other hand, the income for the year will be calculated when the year ends.
To counter Thomas, it should be noted that Rita can say that subsidy cut-offs can be determined on the basis of income for the preceding year.
Answer:
A. The real interest rate is higher in Alpha, but the nominal interest rate is higher in Beta.
Explanation:
Real interest rate: the interest rate after taking into consideration the inflation effect, which decreases the interest real return.
real-rate = nominal - inflation
Alpha: 7% - 3% = 4% real interest rate
Beta: 10% - 8% = 2% real interest rate
Alpha real interest rate is higher than Beta
alpha nominal rate: 7%
beta nominal rate: 10%
the Beta nominal rate is higher than Alpha.
This makes option A the only correct answer.