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3 years ago

What are things to consider before opening a business?

1 answer:

7 0

You should consider whether you want it to be a private or public company. A private company means that should the business fall-out, you and your business partners are responsible for the cost of the lawsuit and you will have to pay out of pocket. If your business is public, meaning that people can buy shares of your stock, then you would only have to pay up to the value of the amount of stock that you own. Hope that helps!

You might be interested in

The strong form of efficient market theory states that: I stock prices instantaneously reflect all publicly available informatio

Reptile [31]

<em>According to the</em><em> strong version of efficient market theory,</em>

<em>Instantaneously, </em><em>stock prices reflect both public and private information.</em>
<em>There is</em><em> no advantage for insiders when choosing investments.</em>

<h3>What exactly is the efficient market theory?</h3>

Share prices, according to the efficient market hypothesis (EMH) or theory, accurately reflect all available information.
According to the EMH, equities trade on exchanges at their fair market value.
EMH proponents contend that investing in a low-cost, passive portfolio is advantageous for investors.

<h3>What significance does the efficient market hypothesis have?</h3>

The efficient market hypothesis adheres to liberal economic theory and has significant political ramifications. According to the efficient market hypothesis, stock prices are always traded at a "fair" market value, negating the necessity for any form of government involvement in the market.

learn more about efficient market theory here <u>brainly.com/question/14311423</u>

4 0

2 years ago

Dynamic Production Services started the year with total assets of $120,000 and total liabilities of $55,000. The revenues and

Serga [27]

Answer:

$20,000

Explanation:

The income statement shows the revenue and expenses of an entity for a period. The difference between the entity's revenue and expenses gives the net income.

The balance sheet on the other hand shows the company's assets and liabilities, the difference of these is the owners equity.

Hence Dynamic's net income for the year,

= $100,000 - $80,000

= $20,000

7 0

3 years ago

On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $1

UkoKoshka [18]

Answer:

a. Depreciation expense per hour:

= (Cost - salvage value) / Expected operating hours

= (228,000 - 16,000) / 26,500

= $8 per hour

b. First year depreciation: Second year depreciation:

= 1,250 * 8 = 2,755 * 8

= $10,000 = $22,040

Third year depreciation:

= 1,225 * 8

= $9,800

Journal entries

Date Account Title Debit Credit

June 30, Year 1 Depreciation $10,000

Accumulated Depreciation $10,000

Date Account Title Debit Credit

June 30, Year 2 Depreciation $22,040

Accumulated Depreciation $22,040

Date Account Title Debit Credit

June 30, Year 3 Depreciation $9,800

Accumulated Depreciation $9,800

4 0

3 years ago

Supply-side economics attempts to stimulate output and lower unemployment by

yawa3891 [41]

Supply-side economics attempts to stimulate output and lower unemployment by reducing taxes to stimulate investment and consumer spending.

<h3>What is supply-side economics?</h3>

Supply-side economics is a economics theory that focuses on the supply of labour and goods. It postulates that taxes and benefits can be used as incentives to stimulate the economy.

Supply-side economics was introduced by Arthur Laffer and implemented by Pres. Ronald Reagan in the 1980s.

4 0

2 years ago

2. In 2016; the cost of a market basket of goods was $2,000. In 2018, the cost of the same market basket of goods was

GREYUIT [131]

Answer:

105

Explanation:

base year = 2016

cost of market basket of goods in base year = $2,000

CPI for base year = 100

year 2018

cost of market basket of goods in 2018 = $2,100

CPI for 2018 = (cost of basket of goods in 2018 / cost of basket of goods in base year) x 100 = ($2,100 / $2,000) x 100 = 105

7 0

3 years ago