Answer: D. 500
Explanation:
The Economic Order Quantity (EOQ) refers to an efficient number of units that a company should order to minimize the total costs of inventory such as holding costs, order costs, and shortage costs.
It is calculated by the formula below,
EOQ = √ (2 * Annual demand * Ordering Cost / Holding Cost)
EOQ = √ (2 * 5,000 * 250 /10)
EOQ = 500 units.
The economic ordering quantity (EOQ) for this item is 500 units.
The philosophy discussed above is called enabling.
Enabling is providing workers with the education and tools they need to make decisions. Companies can empower workers by enabling them with the knowledge to make decisions that will benefit the company and satisfy the customers in the long run. This will lead to increase in profitability.
Answer:
$13,000
Explanation:
Given that:
Jeremy operates a business as a sole proprietorship which uses a cash method of accounting. Now he is planning transfer them into a new corporation in exchange for its stock.
The assets are :
$10,000 of accounts receivable with a zero basis
have a basis of $20,000 and an FMV of $40,000
Liabilities
payable of $12,000
The note payable on medical equipment is $7,000.
Therefore , Jeremy's basis for his stock is : $20,000 -$7,000 = $13,000
since that will reduce the basis by amount of the note payable.
The liabilities payable will be deducted and taken care of by the corporation.
Answer:
D. has its profits taxed as personal income.
Explanation:
Characteristics of a sole proprietorship :
1. It Is Owned by one person
2. The onwer has an unlimited liability.
3. It doesn't usually have an unlimited life. It usually ends with the death of the owner.
4. Profits are taxed as personal income.
5. It is very easy to form. It requires little legal cost.
