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vovikov84 [41]
3 years ago
14

Josh and Joe are opening a copy store. There are no competing copy stores in the area. They must decide how to organize the busi

ness. They anticipate profits of $550,000 the first​ year, with the ability to sell franchises in the future. Although they have enough to start the business now as a​ partnership, cash flow will be an issue as they grow. They feel the corporate form of operation will be best for the long term. They seek your advice
By selecting the corporate form of business​ now,Josh and Joe will

(A) avoid the double taxation that affects partnerships and proprietorships.
(B) be able to transfer ownership without affecting the continuity of the company.
(C) benefit from the ability to exercise mutual agency within a corporation.
Business
1 answer:
goldenfox [79]3 years ago
6 0

Answer:

(B) be able to transfer ownership without affecting the continuity of the company

Explanation:

The corporate form of business has many advantages incuding the ability to transfer ownerhip without affecting the continuity of the business ( the selling of shares). This is the case as the business is seperate from its owners. The business is a legal entity that own properties, and also carry' s out allot of activities on its own. This is not the case with sole proprietorship and partnership where the owners and the business are one and the same and the owners could be personally liable for its debts.  

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A type of manager that supports first line managers is known as
gayaneshka [121]

Answer:

First-line managers operate their departments. They assign tasks, manage work flow, monitor the quality of work, deal with employee problems, and keep the middle managers and executive managers informed of problems and successes at ground level in the company.

Explanation:

7 0
2 years ago
Richards Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000. It had 50,000 shares of co
Scilla [17]

Answer:

Option (d) 7 times

Explanation:

Data provided in the question:

Net income = $250,000

Dividends paid to common stockholders = $50,000

Common stock outstanding = 50,000

Selling price of the common stocks = $35

Now,

The price-earnings ratio is calculated as:

⇒ ( Stock price ) ÷ ( Earnings per share )

also,

Earnings per share = ( Net income ) ÷ ( common stock outstanding )

= $250,000 ÷ 50,000

= $5

or

Price-earnings ratio = $35 ÷ $5

or

Price-earnings ratio = 7 times

Option (d) 7 times

4 0
2 years ago
The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The follow
maksim [4K]

Answer:

The correct answer is $780.

Explanation:

As per the data given in the question,

Markup percentage = 30%

Total cost = $270 + $135 + $90 +$105

= $600

We can calculate the price by using following formula:

Price = Total cost + (Total cost × markup %)

by putting the value, we get

Price = $600 + ( $600 × 30% )

= $600 + $180

= $780.

Hence, the price that company charge will be $780.

5 0
3 years ago
What is the rationale for the internal control principle, segregation of duties? select one:
liq [111]
The rationale for internal control principle, segregation of duties is that the work of one employee should, without duplication of effort, provide a reliable basis for evaluating the work of another employee. Segregation of Duties is a basic building block of sustainable risk management and internal controls for business. It is based on shared responsibilities of a key process that disperses the critical functions of that process to more than one person or department.
5 0
3 years ago
Sarasota Company purchased a machine at a price of $103,200 by signing a note payable, which requires a single payment of $130,0
nlexa [21]

Answer:

-7.407%

Explanation:

Let interest rate be x%

Present value of payment = $130,002 * PV of discounting factor (rate%, time period)

$103,200 = $130,002 * 1.0x^3

1.0x^3 = $103,200 / $130,002

1.0x = ($103,200 / $130,002)^(1/3)

1.0x = 0.793834^(1/3)

1.0x = 0.92592660981

x = (0.92592660981 - 1) * 100

x = -0.07407*100

x = -7.407%

3 0
3 years ago
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