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ruslelena [56]
3 years ago
12

Give at least one disadvantage of incorporation and explain why it is a disadvantage.

Business
1 answer:
Naya [18.7K]3 years ago
5 0

Answer:

1. Lack of ownership

2. Higher taxation

3. Legalities and formalities

Explanation:

An incorporated company is one that has a separate legal entity from that of its owner and shareholders. Disadvantages of an incorporated company include:

  • <em>Lack of ownership</em>

An incorporated business is a separate entity from its owner. Hence, separate bank accounts would be required along with separate business identification since personal identification would not be sufficient. At the same time, personal funds must be kept separate from business funds. Mixture of the two is an offense against the law. Also, as shareholders are involved, they may have voting rights, hence, the owner will not have a complete say in all business activities.

  • <em>Higher taxation</em>

Incorporated companies are expected to pay higher taxes whilst others may have minimum taxable limits. The owner will have to pay income tax as well as corporate taxes. They will also accumulate other expenses such as accounts and legal fees whilst processing these complex taxation methods.

  • <em>Legalities and formalities</em>

Incorporating a business in itself requires complex procedures and a lot of paperwork. After this has been accomplished, the company is still expected to follow strict codes of conduct such as those provided by the Companies Act. This would include the way borrowings and lending occur, investments, dividend provisions, meetings and audits. They will also have to register documents under the Registrar of Companies.

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2 years ago
A hungry man is willing to pay a high price for food. After he is no longer hungry, he is not willing to pay the smae high price
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in an effort to combat the high costs and losses associated with turnover, managers at an analytics firm are studying the recrui
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<h3>What is Benchmarking?</h3>

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6 0
1 year ago
Unit volume as a pricing objective refers to the ratio of production costs to the minimum sales price that would still generate
victus00 [196]

Answer:

The quantity of products to be produced or sold.

Explanation:

The pricing objectives refer to the goals a business establih and that it uses to establish the way in which it sets the prices of the products or services. Unit volume is a price objective and it refers to establishing a price to reach a high unit volume. According to this, the answer is that unit volume as a pricing objective refers to the quantity of products to be produced or sold.

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2 years ago
A manufacturer wishes to make tee-shirts for the band Dixie Chicks. They sell for $11 each. She must deliver all the tee-shirts
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Answer:

44,000*n dollar

Explanation:

If a machine produce 200 per day at the rate of 11 dollars each and she has 20 days. This implies that each machine will produce 44,000 dollar

Therefore for n machine, she will have money m of 44,000*n dollar

8 0
3 years ago
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