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Kitty [74]
3 years ago
5

Identify a disadvantage of being an S corporation.

Business
1 answer:
stiks02 [169]3 years ago
5 0

Answer:

The answer is C. section 1202 treatment (qualified small business stock) is not available

Explanation:

An S corporation refers to a type of corporation that meets specific internal revenue code requirement.

S corporation is often more attractive to small-business owners than a standard (or C) corporation. That's because they have some appealing tax benefits and still provides business owners with the liability protection of a corporation.

Corporation taxes filed under S corporation may pass business income, losses, deductions, and credits to shareholders. S corporation shareholders must be individuals, specific trusts and estates, or certain tax-exempt organization.

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Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get promin
Nostrana [21]

Answer: <em>Entrepreneur</em>

Explanation:

From this particular case, we can state that Yocom is the prime example of an <em>entrepreneur</em>. The process under which an individual designs, launches and runs their new business or organization is referred to as entrepreneurship. The individuals who thereby create these organizations and businesses are known as called entrepreneurs.

4 0
4 years ago
Joe wants to be able to purchase a dream car on January 1,2004, just after he graduates from college. Joe has had a part time jo
Bad White [126]

Answer:

FV= $46,031.45

Explanation:

Giving the following information:

Monthly deposit= $450

Number of months= 59

Interest rate= 0.21/12= 0.0175

To calculate the final value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {450*[(1.0175^59) - 1]} / 0.0175 + 450

FV= $46,031.45

5 0
4 years ago
The market capitalization of this company is $140 million, it's beta is 0.75, the risk free rate is 2% and the market risk premi
tiny-mole [99]

Answer:

Ans. The cost of equity capital is 6.5 (6.5%)

Explanation:

Hi, all we need to do is fill the following equation with the data from the problem.

r(e)=rf+beta*(MRP)

Where:

rf = Risk free rate (in our case, 2%)

MRP = market risk premium (in our case, 6%)

r(e) = Cost of equity capital

Therefore, this is what we get.

r(e)=0.02+0.75*0.06=0.065

So the cost of equity capital is 6.5% or 6.5 as the problem suggests to answer.

Best of luck.

5 0
3 years ago
If an economy is in short-run equilibrium that is below potential, what forces will bring the economy to long-run equilibrium?
ANEK [815]

If an economy is in short-run equilibrium that is below potential, the forces that will bring the economy to long-run equilibrium are new price level, nominal salaries, prices, and perceptions decrease.

Real GDP equilibrium and the short-run price level are determined by the junction of the economy's aggregate supply and demand curves. Its long-run equilibrium is determined by where aggregate demand and aggregate supply intersect.

The concept of the long run states that all markets are in equilibrium, all prices have fully adjusted, and all quantities are in equilibrium. The short-run, in contrast, is characterised by some limitations and a partial state of market equilibrium.

When enough time has passed and no factors have been fixed, the overall supply shifts from the short to the long term. Then, the new short-run and long-run equilibrium states are contrasted with that condition of equilibrium.

To learn more about equilibrium here

brainly.com/question/28081379

#SPJ4

5 0
2 years ago
The next dividend payment by Hoffman, Inc., will be $2.50 per share. The dividends are anticipated to maintain a growth rate of
Novay_Z [31]

Answer:

The dividend yield is 5.14%

Explanation:

In order to calculate the dividend yield we would have to calculate the following formula:

Dividend yield=Dividend/Beginning value

According to the given data we have the following:

Dividend=$2.50 per share

Beginning value =$48.60 per share

Therefore, Dividend yield=$2.5/$48.6

Dividend yield=5.14%

The dividend yield is 5.14%

6 0
3 years ago
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