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lozanna [386]
3 years ago
5

Carol and her friends are creating a new company that ships monthly subscription boxes filled with beauty products to customers.

Carol has multiple partners and she wants to avoid both double taxation and personal liability at the same time. In addition, she wants to pay the partners based on their company ownership percentage. Carol can accomplish her goals by forming what type of business entity?
- An S corporation.- A partnership.- A C corporation.
Business
1 answer:
aliina [53]3 years ago
6 0

Answer:

An S corporation.

Explanation:

The S corporation was formed by Congress, for use by small business owners, offering the best characteristics of both a C corporation and a partnership.

It has become the most popular business entity type in recent years. Numerous studies indicate lower overall taxes are paid when an S corporation is utilized.

Common Characteristics of S and C Corps:

-Same liability protection

-Separate legal entities

-The owners are shareholders

-Long standing case law

-Easy transfer of ownership

-Broader range of deductible expenses

You might be interested in
In Sheridan Company, the Cutting Department had beginning work in process of 9000 units, transferred out 24600 units, and had an
Tom [10]

Answer:

The 21,100 units were started through company during the month

Explanation:

The number of units were started through company during the month is computed as:

Number of units were started = Transferred out units - Ending work in progress units

where

Transferred out units is 24,600

Ending work in progress units is 3,500

Putting the values above:

Number of units were started = 24,600 - 3,500

= 21,100

Therefore, 21,1600 units were started through company during the month.

Note: The beginning work in progress will be considered as number of units in started is computing.

4 0
3 years ago
The year-end adjusted trial balance of Hilltoppers Corporation included the following account balances: Cash, $3,600; Equipment,
Galina-37 [17]

Answer:

Explanation:

The preparation of the post-closing trial balance is presented below:

                                        Hilltoppers Corporation

                                     Post-closing trial balance

Particulars                                      Debit                        Credit  

Service revenue                                                               $14,600  

Cash                                               $3,600

Accounts Payable                                                           $1,600

Utilities expense                            $2,600

Salaries expense                           $9,600

Equipment                                      $15,600

Common stock                                                                 $12,000

Retained earnings                                                            $4,400

Dividend                                         $1,200                                    

Total                                               $32,600                     $32,600

4 0
2 years ago
You purchased 100 shares of stock value at $55 per share. The stock value increases to $85 per share what was the rate of increa
Andrews [41]

Answer:

54.55%

Explanation:

The purchasing price is $55

Price has increased to $85.

The monetary increase = $85 - $55 = $30

As a percentage , the increase will be

=$30/$55 x 100

=0.545454 x 100

=54.5454%

=54.55%

3 0
3 years ago
Question 9 of 10
Colt1911 [192]

The correct option is OA. Selling to another company the right to make and market a product line is called spinning off.

Create a new corporation that is independent of the previous organization by spinning off something, like a company. [Firm] He saved the organization and eventually separated its textile sector into a different business.

A corporate spin-off, often referred to as a spin-out, starburst, or hive-off, is a sort of corporate activity in which a corporation "splits off" a segment as a different business or establishes a second incarnation, even if the first is still operating.

Learn more about spinning off here

brainly.com/question/15740828

#SPJ9

6 0
1 year ago
CAPM and Valuation. You are considering acquiring a firm that you believe can generate expected cash flows of $10,000 a year for
UkoKoshka [18]

Answer:

The value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places

Explanation:

We first need to calculate the required rate of return for this firm that will be used as the discount rate in the valuation of the firm using the discounted cash flow methods.

Using the CAPM we can calculate the required rate of return as,

r = rRF + Beta * (rM - rRF)

Where,

  • rRF is the risk free rate
  • rM is the return on Market

So,

r = 0.04 + 0.4 * (0.11 - 0.04)

r = 0.068 or 6.8%

As the cash flows the firm can generate are expected to remain constant through out and they are generated after equal interval of time, this can be treated as a perpetuity.

The present value of a perpetuity is calculated as follows,

Present Value of perpetuity = Cash Flow / r

Present value of perpetuity = 10000 / 0.068

Present value of perpetuity = $147058.8235

So, the value of the firm or worth of the firm is $147058.82 rounded off to 2 decimal places

3 0
3 years ago
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