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3 years ago

Corporations differ from partnerships and other forms of business association in two ways. One of these is that:________.

Business

1 answer:

8090 [49]3 years ago

7 0

Answer: c. they must be publicly registered or in some way officially acknowledged by the law.

Explanation:

Corporations tend to have many shareholders who would get hurt if the company fails and for this reason they are regulated by the law. They must be publicly registered to allow people to purchase and sell shares and they must have the official acknowledgement of the law.

The formation of a corporation can be complicated and require a relatively high number of legal processes and corporations are not regulated by the Federal Trade Commission.

Also, even though shareholders are technically entitled to the company's profits, they don't get to collect it immediately because the company needs money to function and grow.

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After purchasing a coffee cup from your local gas station for $5.00, you can always refill your cup for $0.50. The sunk cost of

Law Incorporation [45]

Answer:

$4.50

Explanation:

The sunk cost is the cost that has been incurred and is unrecoverable in the process of taking a financing decision.

If the cost of a coffee cup from a local gas station cost $5.00 and the cost of refill is $0.50, the coffee is the actual element needed and from the refill, it can be estimated that it costs $0.50.

Hence the sunk or unrecoverable cost is the difference between the coffee cup and the refill cost

= $5.00 - $0.50

= $4.50

3 0

2 years ago

1. Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and financing the rest at 8% interest

Ierofanga [76]

Answer:

1. Down payment = $15,000

2. The existing mortgage (loan) was for $135,000

3. The current monthly payment on the existing mortgage is $990.58

4. The total interest over the life of the existing loan = $221,609.58

6. The amount of the original loan paid off is $22,319.

7. Total amount paid to the loan company over the last 10 years is $258,928.58 ($243,928.58 + $15,000)

8. Total interest paid over the last 10 years is $221,609.58

9. The equity in the home is $67,319 ($180,000 - $112,681)

10. The new monthly payments will be $675.58

11. Saving each month because of the lower monthly payment is $315 ($990.58 - $675.58)

12. Total Interest = $352,137.21 ($221,609.58 + $130,527.63)

13. It does not make sense to refinance because what is saved per month cannot compare with the additional interest expense to be incurred for prolonging the payments.

Explanation:

a) Data and Calculations:

1. Cost of a home = $150,000

10% down payment = $15,000

Existing Mortgage = $135,000 ($150,000 - $15,000)

Home Price 150000

Down Payment 10 %

Loan Term 30 years

Interest Rate 8%

House Price $150,000.00

Loan Amount $135,000.00

Down Payment $15,000.00

Total of 360 (30 years * 12)

Mortgage Payments $356,609.58

Total Interest $221,609.58

Ten years after, the loan balance has been reduced by $22,319 ($135,000 - $112,682)

Refinancing calculations:

Home Price 112681

Down Payment 0 %

Loan Term 30 years

Interest Rate 6

Monthly Pay: $675.58 Monthly

Total Mortgage Payment $243,208.63

Total Out-of-Pocket $243,208.63

Total of 360 Mortgage Payments $243,208.63

Total Interest $130,527.63

4 0

3 years ago

You own a building that has four possible uses: a cafe, a craft store, a hardware store, and a bookstore. The value of the build

Svetlanka [38]

Answer:

The opportunity cost = $2.5

Explanation:

Given:

You own a building that has four possible uses: a cafe, a craft store, a hardware store, and a bookstore. The value of the building in each use is $2,000; $3,000; $4,000; and $5,000, respectively.You decide to open a hardware store.

Question asked:

The opportunity cost of using this building for a hardware store ?

Solution:

As we know:

$Opportunity\ cost =\frac{What\ you\ sacrifice}{What\ you\ gain} \\ \\$

What you sacrifice = Value of a cafe + Value of a craft store + Value of a bookstore

= $2000 + $3000 + $5000 = $10,000

What you gain = Value of a hardware store

= $4000

Thus, the opportunity cost of using this building for a hardware store is $2.5

7 0

2 years ago

An employer can refuse to hire you if you refuse a drug screening test or background check.

solmaris [256]

True

The answer to this question is true

5 0

3 years ago

Esme Inc., a manufacturer of cosmetics, ran an ad campaign in which it claimed that Esme's "Vivid" range of water-proof mascara

Pie

Answer:

The answer is D. Puffery.

Explanation: When an advertisement is being made, certain boastful and exaggerated claims can be made by a company about the superiority and uniqueness of their product.

This claim is termed as Puffery.

Puffery is defined as advertising or promotional content that makes exaggerated or boastful statements about a product or service that are based on opinion rather than something that can be measured.

Puffery in advertising is done based on the chance that no reasonable person would presume the exaggeration to be literally true.

This is what Esme Inc. has done by claiming that its mascara is the best in the world, and also gives ten times more volume to the eyelashes. This is an exaggerated claim.

6 0

2 years ago

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