All categories

3 years ago

A primary disadvantage of the corporate form of organization is:

Business

1 answer:

yaroslaw [1]3 years ago

4 0

Answer:

Corporate earnings are subject to double taxation.

Explanation:

A corporation can be defined as a business that is owned by its shareholders. These various shareholders have the responsibility of putting in place board of directors to supervise the daily activities of the organization.

The ownership of a corporation by shareholders is fully represented by their shares of stock.

Corporate form of business organization assures the owners of their personal asset protection. Various organisations operating in a corporate form find it easier to borrow money, this provides a wide opportunity for the growth of the company.

You might be interested in

Newman Labs is considering buying equipment, which would enable the company to obtain a five-year research contract. The special

DanielleElmas [232]

Answer:

Explanation:

Net present value is a tool used to analyze how profitable a project by deducting the present value the difference between cash inflow and cash outflow over a period of time.

The formula is (cash flow)/(1+r)^i

Revenue - $750,000

Expenses - $650,000

Increase in net income - 100,000

Annual depreciation charge - 650000/5 =$130,000

Discount rate - 12%=3.605

Present cash value =( $100,000+$130000) = $230,000

Please note that depreciation is added back as it is a non cash expenses

Present value of cash flow = annual cash flow * discount rate

=$230,000*3.605 =829,150

Net present value = 829150-650000= 179,150

3 0

3 years ago

Read 2 more answers

During April, the production department of a process manufacturing system completed a number of units of a product and transferr

malfutka [58]

Answer:

1) completed and transferred 293,000

Equivalent units under W/A method:

EU materials 338,500

EU conversion 306,000

Explanation:

Beginning WIP 33,000

started and completed 260,000

completed and transferred 293,000

Ending WIP 65,000

EU under weighted-average methood:

complete and transferred plus percentage of completion ending WIP

293,000 + 65,000 x 70% = 338,500

293,000 + 65,000 x 20% = 306,000

3 0

3 years ago

Seahorse Incorporated, which only has one product, has provided the following data concerning its most recent month of operation

ra1l [238]

Answer:

Unit product cost = $107

Explanation:

Absorption costing is a method of costing where production units and inventories are value at the full cost per unit. Here, fixed overheads are charged to all units produced using an overhead absorption rate

The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads

Fixed production overhead cost per unit

=Fixed manufacturing overhead/units produced

= $43,700/ 1,900 Units

=$23 per unit

Full cost per unit

= $42 + $31 + $11 + 23

= $107

7 0

2 years ago

The variable in an experiment that is observed or measured in response to the experimental condition is known as the _________ v

Ierofanga [76]

Design make liability

5 0

3 years ago

On January 1, 2018, David Mest Communications granted restricted stock units (RSUs) representing 25 million of its $1 par common

natima [27]

Answer:

See the explanation below.

Explanation:

Total compensation expenses = 25 million * 15 = $375 million

1. On December 31, 2018.

Compensation expenses = $375 million / 3 = $125 million

Journal entries will be as follows:

Details Dr ($'Million) Cr ($'Million)

Compensation expenses 125

Paid-in Capital - Restricted stock 125

To record the compensation expenses for 2018.

2. On December 31, 2019.

Compensation expenses = [$375 million * 96% * (2/3)] - $125 million = $115 million

Journal entries will be as follows:

Details Dr ($'Million) Cr ($'Million)

Compensation expenses 115

Paid-in Capital - Restricted stock 115

To record the compensation expenses for 2019.

3. On December 31, 2020.

Compensation expenses = ($375 million * 96%) - $125 million - $115 million = $120 million

Journal entries will be as follows:

Details Dr ($'Million) Cr ($'Million)

Compensation expenses 120

Paid-in Capital - Restricted stock 120

To record the compensation expenses for 2020.

5 0

3 years ago