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AnnyKZ [126]
3 years ago
7

LO 2.1Identify the three primary classifications of businesses and explain the differences among the three.

Business
1 answer:
cricket20 [7]3 years ago
8 0

Three Primary Classifications of Businesses

We can classify businesses into following three types

1: Sole Proprietorship

2: Partnership

3: Corporation

Explanation of the Differences Among Them

Sole Proprietorship

It is also known as the sole ownership, it is run by one single person who works as the owner, this type does not fall under any legal entity title. It is most simplest form of business where one man, the owner bears all the profits, losses and responsibilities like local grocery corner shop etc.

Partnership

Here in partnership, there are two or more than two persons who open a businesses on profit and loss sharing basis which could be different as per their agreement. They all are equally responsible for the responsibilities and liabilities of that business.

Corporation

Corporation can defined as a legal entity which has nothing to do with owners, it is totally a separated being from its owners. It has its own liability, functions and rules. Corporation can sign any contract by its own even without interference from its owners. It has board of governors who basically run them independently. Walmart, Apple, Microsoft, Samsung, Nokia are the best examples of Corporation

Therefore, these are basic differences between these three primary types of businesses.

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If the supply curve and the demand curve for lettuce both shift to the left by an equal amount, what can we say about the result
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Answer:

d. The price will stay the same, but the quantity will increase.

Explanation:

When the demand and supply both fall, the equilibrium quantity will definately fall but the price will remain the same. The new supply adapts to the reduction of the demand.

6 0
3 years ago
Carr Corp. declared a 7% stock dividend on its common stock. The dividend:
oksano4ka [1.4K]

Answer:

C) has no effect on Carr's earnings and profits for federal income tax purposes.

Explanation:

A stock dividend means that the corporation issues its existing shareholders more stock.

In essence, the corporation is merely diluting the proportional ownership interest of existing shares.

This has no effect on the corporation's earnings and profits for federal income tax purposes.

Therefore, the dividend has no effect on Carr's earnings and profits for federal income tax purposes.

4 0
3 years ago
Calgary Industries is preparing a budgeted income statement for 2015 and has accumulated the following information. Predicted sa
lesya [120]

Answer:

$192,500

Explanation:

budgeted net income statement

Net sales                   $750,000

<u>COGS                       ($300,000) </u>

Gross profit               $450,000

Selling expenses       ($83,000)

<u>Adm. expenses         ($92,000) </u>

EBIT                           $275,000

<u>Income taxes             ($82,500) </u>

Net income                $192,500

8 0
3 years ago
The length of time to perform an activity is often dependent upon who will do that work.
Alex787 [66]

Answer:

True

Explanation:

6 0
3 years ago
Read 2 more answers
During 2018​, Doug incurs the following deductible​ expenses:
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The amount of Doug's taxable income is <u>$27,700</u>.

<u>Explanation</u>:

<u><em>GIVEN</em></u>:

AGI = $35,000

State income​ taxes = $2300

Local property taxes = $3000

Medical expense = $800

Charitable contribution = $2000

Total deduction amount= State income​ taxes+Local property taxes+Charitable contribution

                                        = 2300+3000+2000

                                        = $ 7300

Total deduction amount= $7300

Taxable income= $35000- $7300

                         = $27,700

The amount of Doug's taxable income is <u>$27,700</u>.

3 0
3 years ago
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