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Fittoniya [83]
2 years ago
5

Grace Owen formed a corporation with three of her friends for purposes of operating a catering company. Grace used her own check

ing account to deposit the client payments and to make distributions of the corporation’s profits to her three friends, who together owned 50% of the shares, with Grace owning the remainder of the shares. Grace promised her friends "no meetings, no formalities, we'll just run the catering business." Several wedding guests at a reception Grace’s company catered became ill. Grace had not purchased insurance. The guests brought suit to recover their medical bills and other damages from Grace and her three friends. Grace says she has no personal liability for the bad food that resulted in their illness.
Business
1 answer:
andrezito [222]2 years ago
7 0

Answer:

Grace is incorrect because of the veil and alter ego theory

Explanation:

In this scenario Grace formed a corporation along with her three friends. As a result of catering services offered guest became ill and sued Grace and the other owners for damages.

According to the alter egos theory personal liability can be invoked on the owners of a corporation or its limited liability members.

Alter ego theory is used to penetrate the corporate veil that protects shareholders. Personal liability can be assigned on the business owner as it is in this case against Grace and the other owners.

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At BCD car wash, when a customer arrives, he or she first checks in with a receptionist and then leaves the car to one of severa
Dimas [21]

Answer:

10 minutes

Explanation:

Data provided in the question

Reception taking time = 3 minutes

Car wash taking time = 5 minutes

Paying the cash register taking time = 4 minutes

Returning to car and leaving taking time = 2 minutes

So, the theoretical flow time in minutes is

= Reception taking time + maximum time of car wash and paying the cash register + returning to car and leaving taking time

= 3 minutes + 5 minutes + 2 minutes

= 10 minutes

5 0
3 years ago
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided th
g100num [7]

Answer:

$289,000

Explanation:

Predetermined overhead rate (Fixed) = Budgeted Fixed overhead cost / Budgeted hours

Predetermined overhead rate (Fixed) = 300,000/60,000

Predetermined overhead rate (Fixed) = $5 per hours

Applied Fixed overhead = Standard hours allowed × Predetermined overhead rate(fixed)

Applied Fixed overhead = 57,800 * $5 per hours

Applied Fixed overhead = $289,000

So, the fixed overhead applied to production during the period is $289,000

8 0
3 years ago
Only three airlines fly from San Francisco to Medford, Oregon. No new airline will enter this market, because there are not enou
I am Lyosha [343]

Answer:

a) Oligopoly

Explanation:

The oligopoly is a market structure which characterized by the presence of a few large companies producing homogeneous or differentiated products

In this market, there are few sellers plus there is also a barriers for entering the new firms in the market. Also, the prices are normally fixed in this market because due to the competitors as they are fear of price war

So in the given question, it indicated the oligopoly scenario

8 0
2 years ago
What a primary cause of inflation​
lesantik [10]

Excess aggregate demand (AD)

Quick economic growth.

5 0
3 years ago
Howard Co. had the following first-year amounts for a $7,000,000 construction contract: Actual costs $2,000,000 Estimated costs
Dmitrij [34]

Answer:

estimated loss from the project is $1,000,000

correct option is a. ($1,000,000)

Explanation:

given data

contract price = $7,000,000

Actual costs =  $2,000,000

Estimated costs = 6,000,000

Progress billings = 1,800,000

Cash collected = 1,500,000

to find out

What amount should Howard recognize as gross profit (loss)

solution

we get in the amount to complete the project that is

amount to complete = contract price - Actual costs - Estimated costs

amount to complete = $7,000,000 - $2,000,000 - 6,000,000

amount to complete = - $1000000

so estimated loss on project

so that  the total $1,000,000 loss must be recognize

so correct option is a. ($1,000,000)

5 0
3 years ago
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