1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
koban [17]
3 years ago
6

A proprietorship has three important advantages: (1) It is easily and inexpensively formed, (2) it is subject to government regu

lations, and (3) it is subject to lower income taxes than are . However, a proprietorship also has three important limitations: (1) A proprietor has personal liability for the business' debts. (2) The life of the business is limited to the life of the individual who created it. (3) A proprietorship has difficulty obtaining large sums of capital so proprietorships are used primarily for small businesses.
Business
1 answer:
Umnica [9.8K]3 years ago
5 0

Answer:

<em>A proprietorship has three important advantages: </em>

(1) It is easily and inexpensively formed,

(2) it is subject to few government regulations, and

(3) it is subject to lower income taxes than are corporations.

<em>However, a proprietorship also has three important limitations: </em>

(1) A proprietor has personal liability for the business' debts.

(2) The life of the business is limited to the life of the individual who created it.

(3) A proprietorship has difficulty obtaining large sums of capital so proprietorships are used primarily for small businesses.

As all company structures, proprietorships have both advantages and disadvantages. Although the advantages mainly relate to feasibility, the disadvantages are often overlooked. The main disadvantage is the total liability of the owner, which is detrimental if the business faces tough times, which lead to liquidation.

You might be interested in
On August 1, 2018, Trico Technologies, an aeronautic electronics company, borrows $21 million
NemiM [27]

Answer: First Bank Corp journal $

August 1 2018

1.Trico Dr 21m

Creditor Cr. 21m

Narration. Issuance 21m, 9%, 6 months promissory note to Trico

Dec 31 2018

2. Trico Dr. 1,890,000

Interest income Cr. 1,890,00

Narration Interest payable on promissory note to Trico

December 31 2018

3 Bank Dr22,890,000

Trico. Cr. 22,890,000

Narration. payment of promissory notes and interest due on maturity.

7 0
3 years ago
Suppose that the nominal rate of interest is 7% and the expected inflation rate is 3% then the real rate of interest is equal to
NeX [460]
Amoreandrusamoreandrus
5 0
3 years ago
Thomas Jones's research looked at the characteristics of a moral issue to develop the moral intensity model. The model includes
Ksivusya [100]

Answer:

D. Reasoning and values-based decision-making

Explanation:

Moral intensity is the extent to which a person feels the effects of a moral decision.

The moral intensity six dimensions are Magnitude of effects, temporal immediacy, social consultation, proximity, likely effect, and effect concentration.

6 0
3 years ago
Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Rent on manufacturin
astra-53 [7]

Answer: $108,000

Explanation:

Given that,

Rent on manufacturing facility = $ 134,000

Office manager's salary = 84,000

Wages of factory machine operators = 64,000

Depreciation on manufacturing equipment = 34,000​

Insurance and taxes on selling and administrative offices = 24,000

Direct materials purchased and used = 94,000

Period costs are the costs which are incurred for activities not related to manufacturing.​

Therefore,

Period costs includes:

= Office manager's salary + Insurance and taxes on selling and administrative offices

= 84,000 + 24,000

= $108,000

5 0
3 years ago
5. Use excel?s irr function for this problem. Rancho cucamonga has a 6% cost of capital. The firm has an investment opportunity
Lera25 [3.4K]

IRR function for this problem exists 7. 7% and invest in the project.

<h3>What is the IRR function?</h3>

Microsoft Excel exists a spreadsheet designed by Microsoft for Windows, macOS, Android, and iOS. It features calculation or computation capabilities, graphing instruments, pivot tables, and a macro programming language named Visual Basic for Applications.

The Excel IRR function returns the internal rate of return (IRR) for a sequence of cash flows that emerge at regular intervals. Specify the internal rate of return. Return was computed as a percentage. =IRR (values, [guess]).

IRR stands for the interest rate at which the sum of all cash flows equals zero, thus it exists useful for comparing one investment to another. In the initial example, if we substitute 8% with 13.92%, the NPV evolves to 0, and your IRR becomes zero. As an outcome, IRR is described as the discount rate at which a project's NPV becomes zero.

IRR function for this problem exists 7. 7% and invest in the project.

To learn more about  IRR function refer to:

brainly.com/question/7920964

#SPJ4

4 0
2 years ago
Other questions:
  • Mountain High Ice Cream Company transferred $72,000 of accounts receivable to the Prudential Bank. The transfer was made with re
    6·1 answer
  • New Business is just being formed by 10 investors, each of whom will own 10% of the business. The firm is expected to earn $500,
    13·1 answer
  • Michelle symonds suggested a set of seven deadly sins of project management, that is, the common mistakes that companies commit
    12·2 answers
  • A company has budgeted direct materials purchases of $250000 in July and $420000 in August. Past experience indicates that the c
    5·1 answer
  • You are selling a product on commission, at the rate of $1,000 per sale. To date, you have spent $800 promoting a particular pro
    11·2 answers
  • If the U.S. government was concerned that the depreciating value of the US$ caused the Japanese government unstable, it would se
    8·1 answer
  • Which of these is a successful time to management strategy
    11·1 answer
  • Riytiz Corp. and Tenkriz Corp. are two industrial developers. They plan to combine their funds, finances, risks, and expertise t
    6·1 answer
  • Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its Consumer ATV Department for th
    15·1 answer
  • a person who works for a firm, but is not necessarily an owner, is called multiple choice question. a shareholder an agent a sto
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!