Complete/Correct Question:
A proprietorship has three important advantages:______________.
(1) It is easily and inexpensively formed,
(2) it is subject to government regulations, and
(3) it is subject to lower income taxes than are corporations
Answer:
True
Explanation:
A proprietorship is an unincorporated business owned by an individual. Starting a proprietorship business is easy to start and has it most important advantage stated above in the question. it also has its limitations and as such some sole proprietorship businesses have converted to corporations when the business limitations are too overwhelming.
The limitations of sole proprietorship includes unlimited liability for the business or debts it might incure, the life of the business is a function of the life span of the owner, inability to secure huge capital from banks,etc.
A sole proprietorship is therefore used for small businesses.
Cheers.
Answer:
Dave's marginal revenue from selling milk is $ 5.
Explanation:
This problem requires us to calculate Dave's marginal revenue from selling milk. The marginal revenue is calculated by subtracting current reveue form the expected or forecasted revenue. Detail calculation is given below.
Current reveune = 4 * 5 =20 dollars -A
Expected Reveunue = 5 * 5 = 25 dollars -B
Marginal revenue = A-B = 25- 20 = $ 5
Answer:
$4,000
Explanation:
The computation of interest expense to be recognized on July 1 is shown below:-
Here the interest is paid in semi-annually,
so, the interest rate per period= 10% ÷ 2 = 5%
and the number of periods = 5 × 2 = 10
Bond premium = Five year bonds - Issued amount
= $92,000 - $88,000
= $4,000
Bond premium amortization per period = Bond premium ÷ Number of periods
= $4,000 ÷ 10
= $400
Interest expense to be recognized on July 1 = Issued amount × Interest rate per period) - Bond premium amortization per period
= ($88,000 × 5%) - $400
= $4,000
If people start to put more of their income into savings and investment, this will provide a boost to the economy.
This is because, more money would be available for businesses to invest in various industries and sectors, which will lead to more spending and more jobs in the economy.
Answer:
Pelican's debt ratio 9%
Timberland's debt ratio 50%
The times interest earned ratio for Pelican 57.5
The times interest earned ratio for Timberland 10.45
C is correct as Pelican has 57.5 times interest earned ratio while Timberland only 10.45 times.in other words,earnings of Timberland is more volatile.
D is also correct ,since it has financial leverage of 50.46% as against Pelican financial leverage of 9.17%
The operating margin for Pelican is 14.76% while the operating margin for Timberland is 13.8%
Return on total assets for Pelican is 36.9% and that of its competitor is 34.5%
The return on equity for Pelican 40.6% and that of Timberland is 69.6%
C is correct as Pelican is more profitable than Timberland as shown by the higher net profit margin and return on assets
B is correct, even though Pelican is more profitable (higher net profitmargin), Timberland has a higher ROE than Pelican due to the additional financial leverage risk.
Explanation:
All of the ratios requested for are found in the attached spreadsheet.