The two primary factors affecting an entrepreneur choice of legal ownership for a venture are TAXES AND LEGAL LIABILITY.
The type of business that an entrepreneur establish will determine the type and the amount of tax that it will be required to pay. The legal liability of the entrepreneur determines the extent to which he can be liable in case he finds himself in a financial mess. The entrepreneur should try and minimize the impacts of these two factors.
Answer:
Relevance and cost effectiveness
Explanation:
Full disclosure principle means that a business should report all the relevant and necessary information regarding their financial statement to the people who are accustomed to reading it as not disclosing full information might affect the readers understanding.
It prevents any lack of information from the business's financial information and helps to ensure that creditors, stakeholders and investors are aware of all the relevant information while making key decisions that affect the company.
Not disclosing all the information could manipulate the companies financial statement and it may look stronger that it really is.
Answer:
$10,000
Explanation:
Net Credit Sales $250,000
Allowance for Doubtful Accounts $250,000*4%=$10,000
Bad Debt Expense will be $10,000
Bad Debt Expense Dr.$10,000
Allowance for Uncollectible Cr.$10,000
