Answer:
The above statement is false.
Explanation:
The most common legal structure of business are as follows:
Sole proprietor : It is a form of business in which a business is fully controlled by only one person. He takes all the decision himself . He has unlimited liability. His personal assets are used by the creditors to recover their money
Partnership: It is a form of business in which minimum 2 person come together to form a partnership firm. They share profit and loss as agreed between them. They have a partnership deed . Every partner have unlimited liability .
Limited liability Partnership : This form is recently introduced. This form come under the limited liability 2008. It has separate legal entity.
Corporation: A corporation has a independent legal entity, separate from its owners and has different tax calculation than other structure. The owner of the corporation has limited liability upto their share in corporation
S-Corporation: This business structure is more simple than corporation. It is more beneficial for small owners and also have some tax benefits. S Corporation can also cash accounting system rather than accural method of accounting.
Thus, the statement is false that the legal structure of business is only four.
Answer:
Value Proposition
Explanation:
Value proposition is the a promise to customers that the benefit that we saying our product possesses over other competitors will be received by you if you buy our product. It provides the reasoning to the customers why they should buy our products. So the right option is VALUE PROPOSITION because the question says that the firm tries to take the customers from the market by telling them what benefits and uniqueness the product will offer you above other competitor's products.
Answer:
Recession.
Explanation:
Recession is a time of slow economic activity.Businesses decrease production,unemployment rises and many consumers have less to spend.
Answer: -9
Explanation:
The Tax multiplier of a nation shows how much the aggregate demand of an economy will change if there is a change in taxes.
It is calculated by the formula:
= -MPC / ( 1 - MPC)
= -0.9 / (1 - 0.9)
= -9
<em>If taxes are reduced, aggregate demand would increase by 9 times. </em>
Answer:
$1.23
Explanation:
The computation of the diluted earnings per share is shown below:
Diluted earning per share = Net income ÷ weighted number of common stock outstanding
where,
Net income is $391,320
Weighted average number of outstanding shares equal to
= 206,000 shares + 114,000 shares
= 320,000 shares
The 114,000 shares is
= 570,000 ÷ $15 × $12
= 456,000
Now 570,000 - 456,000 = 114,000 shares
So, the diluted earning per share
= $391,230 ÷ 320,000 shares
= $1.23
