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3 years ago

What are the three legal forms of business organization? What are their advantages and disadvantages?

Business

1 answer:

algol133 years ago

4 0

Answer:

There are three legal forms of business organization that are sole proprietorship, society and corporation.

Explanation:

Sole proprietorship: A company that has only one person and works for its own benefit. In almost all the world there are a large number of sole proprietorships which are usually small companies, the most common being for example a personal teacher, a bicycle workshop, etc.

Advantage:

- The owner receives all profits and profits.

- Independence

Disadvantages:

- There is unlimited liability so that all income can be used to pay debts.

- The owner performs several activities.

Company: company that has two or more people. In general, partnership companies are larger than sole proprietorships. The most common companies in society are finance and insurance.

Advantage:

- Raises more funds than sole proprietorship.

- Greater intelligence and administrative ability.

Disadvantages:

- The company dissolves when a partner dies.

- Difficulty to liquidate or transfer the company.

Corporation: The property (shares) of a corporation are its shareholders. Shareholders have profits by receiving dividends that are distributions of the earnings of the shares.

Advantage:

- They have a limited liability, they don't lose more money than they invested.

- The company has a long life.

Disadvantages:

- Higher organizational costs than in other business forms since they need to hire staff.

- Subject to greater government regulation.

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At December 31, 2021 and 2020, P Co. had 58,000 shares of common stock and 5,800 shares of 5%, $100 par value cumulative preferr

Finger [1]

Answer:

$10.19 per share

Explanation:

With regards to the above, the basic earnings per common share is seen below;

Preferred dividend = Shares × Par value × Shares percentage

= 5,800 × $100 × 5%

= $29,000

So, basic earning per share = (Net income - Preferred dividend) ÷ Common shares

= ($620,000 - $29,000) ÷ 58,000

= $10.19 per share

Therefore, for 2021, basic earnings per common share amounted to $10.19

6 0

3 years ago

An accountant agreed to perform a compilation of a company's financial statements under Statements of Standards for Accounting a

LekaFEV [45]

Answer: The following would the accountant do related to the compilation engagement: Issue a compilation report even though review procedures were performed on the engagement.

Under Statements of Standards for Accounting and Review Services (SSARS), the accountant decided to perform some analytical procedures.

Therefore, the correct option is (d)

5 0

3 years ago

Jamie is looking for a new job. She was top sales representative for the region, but the promotion to district manager went to a

Marina86 [1]

<h2>Jamie's lack of motivation stems from a breakdown in the Performance reward relationship.</h2>

Explanation:

It is the level of performance of employee that the employee feels and based on the performance, the employee expect promotion and increment.

Here in this situation, based on the self-evaluation of the promotion of Jamie, he would have expected the promotion but since it has been given to other manager, it has broken down the performance reward relationship of Jamie.

Promotion should be based on performance than considering other things which would help employer or manager to keep up the Performance reward relationship

6 0

3 years ago

Jack enters into a contract with Jill’s Farm to provide water for Jill’s irrigation needs. Jack fails to deliver. Jill initiates

ivann1987 [24]

Answer:

C) the Defendant

Explanation:

From the question, We are informed about how Jack enters into a contract with Jill’s Farm to provide water for Jill’s irrigation needs, and how Jack fails to deliver. Jill initiates a suit against Jack, asking the court to order Jack to perform. In this case Jill is a Defendant. In a lawsuit, there will always be a defendant and a plantiff, the defendant is the party that is sued, while the plantiff is the party that raise the lawsuit. However, couter-complaint is allowed to be filed by the defendant against the plantiff if he/she want. Therefore Jill is the defendant here while Jack is plantiff.

3 0

3 years ago

Sales of denim shorts and denim jeans for may totaled $1,955. the shorts sold for $15 each, and the jeans sold for $28 per pair.

Vesnalui [34]

Number of shorts sold=xnumber of Jeans sold =y 100 items were sold x +y=100 eq 1x=100-y The shorts sold for $15 each, and the jeans sold for $28 per pair.Sales of denim shorts and denim jeans for May totaled $1,955. 15x+28y=1955 eq 2

substitute the value of x in second equation 15(100-y) +28y=1955 1500-15y+28y=1955 13y=455 y=35 x=100-35=65 Number of shorts sold=x=65
number of Jeans sold =y=35

7 0

3 years ago