For a loss to be shown on his tax return, the total expenses (prices of goods, supplies, transportation and so on) must be larger than the sale or revenue.
Since he's always showing profit, this means that his revenue his more.
Scott may be including some illegitimate factors (factors that are not usually included in the calculation) in his calculations. These factors may lead to hypothetical loss for him.
Answer:
1. Lack of ownership
2. Higher taxation
3. Legalities and formalities
Explanation:
An incorporated company is one that has a separate legal entity from that of its owner and shareholders. Disadvantages of an incorporated company include:
- <em>Lack of ownership</em>
An incorporated business is a separate entity from its owner. Hence, separate bank accounts would be required along with separate business identification since personal identification would not be sufficient. At the same time, personal funds must be kept separate from business funds. Mixture of the two is an offense against the law. Also, as shareholders are involved, they may have voting rights, hence, the owner will not have a complete say in all business activities.
Incorporated companies are expected to pay higher taxes whilst others may have minimum taxable limits. The owner will have to pay income tax as well as corporate taxes. They will also accumulate other expenses such as accounts and legal fees whilst processing these complex taxation methods.
- <em>Legalities and formalities</em>
Incorporating a business in itself requires complex procedures and a lot of paperwork. After this has been accomplished, the company is still expected to follow strict codes of conduct such as those provided by the Companies Act. This would include the way borrowings and lending occur, investments, dividend provisions, meetings and audits. They will also have to register documents under the Registrar of Companies.
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Answer:
d. may have too many or too few firms, but the government can do little to rectify the situation.
Explanation:
The operating cash flow of kleczka llc. is: 474000
It is calculated as:
Sales 2500000
Less: Cost of Goods Sold -1800000
Gross Profit 700000
Less: Operating Expenses - 300000
Operating Income 400000
Add: Depreciation 200000
Operation Cash Flow 600000
Less Tax (600*21%) 126000
Net Operating Cash Flow 474000
Operating cash flow or OCF is a measure of the amount of cash which is generated by a company's normal business operations.
To know more about operating cash flow here:
brainly.com/question/17001006
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