The possible management structures and key terms of any operating agreement that must be considered to form an LLC are related to responsibility sharing, as an LLC is a type of entity owned by its partners.
Some features of the LLC are:
- Less formality.
- Tax savings.
- Flexible management.
- Simple organizational structure.
Therefore, the LLC is a single hybrid entity, more streamlined than a corporation, with the advantage that this proprietorship has limited liability protection.
Management is also more flexible, with decision-making being possible to be shared among its members, regardless of hierarchy.
It is also important to highlight the taxes, as in an LLC the taxation is simpler, with the losses and gains being reported in the tax returns, which helps to offset the income.
So this is a more streamlined and protected form of partnership that can be managed by a group of members more securely than a corporation.
It has less formal requirements to exist, and in case of bankruptcy or debt, there is greater protection for each member's personal property, as in an LLC the debts and obligations cannot be greater than the initial capital invested in the company.
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Answer:
Liquidity risk is the inability to quickly sell a bond for its full value. This risk exists primarily in thinly traded issues. Default risk is the likelihood the issuer will default on its bond obligations and is the basis for bond ratings.
Liquidity is a prime determiner of yield spreads, explaining up to half of the cross-sectional variation in spread levels and up to two times the cross-sectional variation in spread changes that is explained by the effects of credit rating alone.
Liquidity risk Liquidity refers to the investor's ability to sell a bond quickly and at an efficient price, as reflected in the bid-ask spread. High-yield bonds can sometimes be less liquid than investment-grade bonds, depending on the issuer and the market conditions at any given time.
(If some parts overlap/relate to the exactly to other parts, I'm sorry. But there ya go !)
Gross profits is defined as the total profit generated minus the costs of goods sold, that is, gross profit = sales - costs of goods sold.
From the question given,
Net sale = $ 100,000
Costs of goods sold = $ 70,000
Gross profit = $100,000 - $70,000 = $30,000.
Thus, the gross profit is $30,000.
Operating expenses is not directly involved in the production process that is why it is not used in the calculation of gross profit. But the operating cost will be involved in the calculation if we are asked to calculate the NET PROFIT.
Answer:
A
Explanation:
In international trading theory the absolute advantage is the capability to produce some good with the lowes cost of opportunity possible because that is the product which represents an advantage for a nation, the do not need to evaluate their production from other product so it is their identity.
Answer:
D. Threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, current rivalry
Explanation:
Porter's 5 Factor Model is also known as Porter's five forces. Michael E. Porter was a Professor from Harvard Business School. The model is usually applied in an industry to identify the forces that compete to shape the industry. Put differently, these five forces help to analyse an industry's Strength, Weaknesses, Threats and Opportunities (SWOT) Analyses.
As detailed in the answer, the five categories in Porter's model are; Competitors in the industry, Potential of new entrants in the industry, Power of suppliers, Power of customers and the threat of substitute products.
