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3 years ago

Do you know, and can you describe, the three principal ways a for-profit business might legally organize?

Business

1 answer:

Lostsunrise [7]3 years ago

4 0

Answer:

1. Sole Proprietorship

2. Limited Liability Company (LLC)

3. Corporation

Explanation:

1. Sole Proprietorship - This is also called a one-man business. It could be your small neighbourhood store and so on. It is usually owned and run by the same person. The owner has unlimited liability and thus can lose his/her personal properties where the business is in debt.

2. Limited Liability Company (LLC) - these are private limited liability companies, and as name implies, the liability of its members is limited to the amount they contribute to the business. The Company is a legal entity and can own, buy and sell properties in its name

3. Corporation - This is a public company, its share is quoted on the stock exchange and can be freely traded. The ownership (shareholders) of the public corporation is different from those who run them (management). The Company is a legal entity and can own, buy and sell properties in its name

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Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood

Ann [662]

Answer:

Floyd 43,500

Merriam 12,500

Ramelow 23,000

Explanation:

heir capital account balances as of December 31, 2020 stood as follows: Floyd $ 46,000

Merriam $ 25,000

Ramelow 1/3 interest.

23,000 is the third of the parthnership

23,000 x 3 = 69,000

46,000 + 25,000 + 23,000 = 94,000

loss of 94,000 - 69,000 = 25,000

distributed equally among the members:

Floyd 46,000 - 25,000 / 2 = 43,500

Merriam 25,000 - 25,000 / 2 = 12,500

6 0

3 years ago

Determine proper classification (LO11-1) Wi-Fi, Inc., has the following selected transactions during the year. Required: Select

jekas [21]

Answer:

a. Operating activities (indirect method)

1. Pays a $20,000 account payable

2. Collects a $15,000 account receivable

3. Pays $75,000 to suppliers for inventory.

b. Investing activities

Purchases equipment for $

Loans $50,000 to a customer, accepting a note receivable.

c. Financing activities

Issues $20 million in bonds

Declares and pays a cash dividend of $100,000

d. A separate noncash activities note

Exchanges land for a new patent. Both are valued at $300,000.

Explanation:

The categorisation and their effects are explained as follows:

a. Operating activities (indirect method)

1. Pays a $20,000 account payable: This a cash outflow and its effect is a reduction in cash flow from operating activities.

2. Collects a $15,000 account receivable: This a cash inflow and its effect is an increase cash flow from operating activities.

3. Pays $75,000 to suppliers for inventory: This a cash outflow and its effect is a reduction in cash flow from operating activities.

b. Investing activities

1. Purchases equipment for $: This a cash outflow and its effect is a reduction in cash flow from investing activities.

2. Loans $50,000 to a customer, accepting a note receivable: This a cash outflow and its effect is a reduction in cash flow from investing activities.

c. Financing activities

1. Issues $20 million in bonds: This a cash inflow and its effect is an increase in cash flow from financing activities.

2. Declares and pays a cash dividend of $100,000: This a cash outflow and its effect is a reduction in cash flow from financing activities.

d. A separate noncash activities note

1. Exchanges land for a new patent. Both are valued at $300,000: This is a noncash transaction that neitheir leads to the outlow nor inflow of cash.

6 0

3 years ago

The following errors took place in journalizing and posting transactions:Cash of $4,370 received on account was recorded as a de

Mice21 [21]

Answer and Explanation:

The journal entries are shown below:

Cash A/c Dr $8,760

To Fees earned $4,370

To Accounts Receivable $4,370

(being wrong entry made now corrected)

Accounts Payable Dr $1,440

To Supplies Expense $1,440

Supplies a/c Dr 1760

To Cash 1760

(being wrong entry made now corrected)

6 0

3 years ago

When GM introduced the Chevy Nova in South America, it was perplexed to find that, despite its best efforts, it wasn't selling m

anastassius [24]

Answer:

The correct word for the blank space is: Sociocultural.

Explanation:

Sociocultural forces refer to all cultural features a society possesses such as <em>language, values, </em>and <em>customs</em>. In business, sociocultural features can be an opportunity or a threat firms must identify while promoting or introducing a product into a foreign market. Companies must make sure that the introduction of those goods or services is as smooth as possible for the association to achieve its goals.

8 0

3 years ago

Question 3

disa [49]

Answer:

B. The fact that I am a good person.

Explanation:

Credit history refers to a person's track record in borrowing and repayments of loans. It shows whether the individual has honored their debts in full and on time. Credit history is useful when applying for a loan from formal institutional lenders.

A bad credit history shows a person had issues in paying their loans. It affects their future borrowing as lenders may assess them as high-risk customers. Bad credit history attracts high-interest rates. Employers may judge some persons as poor money managers hence avoid hiring them.

Bad credit history is about debt payment but not who the person really is. Inability to repay loans may be caused by several factors such as illness or loss of income. A person's character remains the same regardless of their credit history.

7 0

3 years ago