Answer:
This question is incomplete, the options are missing. The options are the following:
a) Partnership
b) C Corporation
c) S Corporation
d) Limited Liability Company
e) Limited Liability Partnership
And the correct answer is the option D: Limited Liability Company.
Explanation:
To begin with, the name of <em>"Limited Liability Company" </em>refers to a type of form of business, in the field of business law, that is helpful to adapt and use for some owners regarding the particular characteristics that this form gives to them. So once said that, this type of business form has the characteristics of both a corporation and a partnership so that means that it is quite flexible and can adapt depending on the situation that the owner is having. Moreover, one of the most important aspects of this type of form is the fact that the owner has a limited liability to what happens in the company so that means that his private assets are secure under this form.
Answer:
c.Payment of freight costs for goods shipped to a customer
Explanation:
In the inventory account management using the perpetual system, whenever there is an event that may result in a change in the carrying value of inventory, the quantity of the change is immediately determined and adjusting entries are posted.
Examples of such events include purchase of merchandise inventory, return of merchandise inventory to the supplier, .Payment of freight costs for goods received from a supplier (this forms part of the cost of inventory).
From the options given, the only entry that will not result in an adjustment to inventory is c.Payment of freight costs for goods shipped to a customer. This will form part of the selling and distribution cost under operating expenses.
Answer:
393 units will need to be sold to breakeven
Explanation:
Break even point is the point where a Company makes neither makes a profit nor a loss.
Step 1 : Calculate new variables
New Sales = $250 x 1.40 = $350
Variable Costs = $250 x 30 % = $75
New Fixed Costs = $120,000 x 90 % = $108,000
Step 2 : Break even (units)
Break even (units) = Fixed Costs ÷ Contribution per unit
= $108,000 ÷ ($350 - $75)
= 393 units
Thus, 393 units will need to be sold to breakeven
Answer:
b. In the first economy, the spending multiplier is greater than in the second economy. In the third economy, the spending multiplier is undefined
Explanation:
This can be easily understood by going through some calculations in a spending multiplier formula.
WORKINGS
The formula for Spending Multiplier = 
Spending Multiplier
Economy 1: Multiplier = 
= 2
Economy 2: Multiplier = 
= 1
Economy 3: Multiplier = 
= undefined
Note: MPS can be abbreviated as Marginal propensity to save
As we can see here economy 1 is 50% greater than economy 2 and economy 3 is undefined because they spend whole dollar they earn additionally.
On behalf of the above calculations, option B is a perfect match!
Answer:
Portfolio beta = 1.1075
Explanation:
The portfolio beta is a function of the weighted average of the individual stocks betas' that form up the portfolio. To calculate the portfolio beta, we use the following formula,
Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
- w represents the weight of each stock in portfolio
Portfolio beta = 0.30 * 0.95 + 0.25 * 1.12 + 0.25 * 1.13 + 0.20 * 1.30
Portfolio beta = 1.1075
