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3 years ago

Limited liability means the stockholders are not held personally responsible for the financial obligations of the corporation.

Business

1 answer:

sp2606 [1]3 years ago

5 0

Answer:

True

Explanation:

Limited liability - legal liability when the SHAREHOLDERS or founders are liable for the obligations of the company only to the extent of the capital invested in it. We can not say the stakeholders have obligations. The stock holder is the same meaning with shareholder.

The limitation of liability is one of the principles underlying the concept of a legal entity, namely that a legal entity, although an abstraction, actually has a number of features of a real person (i.e. a person), in particular, it is itself capable of having rights and bear obligations, thus limiting the rights and obligations (including liability) of persons who are participants in such a legal entity. Among the various organizational and legal forms of legal entities provided for by the laws of different countries of the world, not everyone provides a limitation of liability to persons standing behind these legal entities. The extent and nature of the limitation of such liability also varies. In some legal systems, limitation of liability is considered as a privilege that is granted to participants in a legal entity in return for fulfilling certain requirements (compliance with corporate procedures, etc.); and in case of non-compliance with these requirements, this privilege may be deemed unreasonable, and the responsibility is transferred to the property of such participants. The economic meaning of limiting liability is to stimulate the economic activity of citizens and make more active use of investment opportunities. The existence of modern public capital markets (and, above all, exchanges) is not possible without the principle of limited liability.

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Strait co. manufactures office furniture. during the most productive month of the year, 3,000 desks were manufactured at a total

jek_recluse [69]

Using High-Low method:x 1 = 1,125 ( low units ), x 2 = 3,000 ( high units )y 1 = 38,000 ( low cost ), y 2 = 59,000 ( high cost ).Formula is: y = m x + b, where b represents Fixed costs. m = ( y2 - y1 ) / ( x2 - x1 ) = ( 59,000 - 36,000 ) / ( 3,000 - 1,125 ) = 11.259,000 = 11.2 * 3,000 + bb = 59,000 - 33,600 = 25,400y = 11.5 x + 25,400Answer: Total fixed costs are $25,400.

7 0

4 years ago

The process of gathering and evaluating information to determine whose interests should be emphasized throughout the project is

grin007 [14]

Answer:

whose interests shoud be emphasized throughout the project

Explanation:

7 0

3 years ago

Managers at Eller Manufacturing are considering purchasing a new refrigerated delivery truck that Adaptive Practice Managerial,

juin [17]

Answer:

C) 10%

Explanation:

($144,000 + $12,780)/$36,000 = 4.355

6 0

4 years ago

Four years ago, Mr. B sold his personal property on contract for $200,000, which resulted in a capital gain of $100,000. Mr. B p

Tju [1.3M]

This question is incomplete because it lacks the appropriate options.

Complete Question

Four years ago, Mr. B sold his personal property on contract for $200,000, which resulted in a capital gain of $100,000. Mr. B properly elected to use the installment method of reporting and through last year had collected $40,000 on the contract. At the start of this year, the buyer defaulted on the contract, and Mr. B repossessed the property. At the time of repossession, the property had a fair market value of $160,000. What is the gain or loss to be reported on the repossession?

A) $20,000 Capital gain

B) $45,000 Ordinary income

C) $60,000 Ordinary income

D) $80,000 Capital gain

E) $100,000 Capital gain

Answer:

D) $80,000 Capital gain

Explanation:

From the question, we are told that Mr B sold his property for $200,000 on contract with $100,000 Capital gain. A Capital gain can be defined as the higher profit that is obtained from selling a property due to the fact that the price at which the house is been sold is higher than the price at which the property was bought.

This means the purchase price of Mr B's property = $100,000

Last year, Mr B collected $40,000 on the contract

Mr B repossessed his property which had a fair market value of $160,000 due to the default in payment of the buyer.

This means : Mr B collected a capital gain on repossession and this is calculated by:

(Selling price + Amount collected on contract) - Fair market value

($200,000 + $40,000 ) - $160,000

$240,000 - $160,000

= $80,000

Therefore , the gain to be reported on the repossession is $80,000 capital gain.

4 0

3 years ago

Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $44 per part plus anot

Fiesta28 [93]

Answer:

Redbud Company

A) Relevant costs:

B) Direct labor

C) Direct material

D) Variable overhead

F) New manager's salary

B) B) Redbud is indifferent about the decision.

C. Other factors to consider:

B) The potential for improved control over the availability of the parts by having it when needed and the potential for improved quality of the parts.

C) Since Redbud Company is considering the use of currently available capacity, it should evaluate any relevant opportunity costs of using this capacity for more profitable activities.

Explanation:

a) Data and Calculations:

Cost of buying parts from outside supplier = $50 per part

Units required in the next year = 10,000

Costs required to produce internally:

Supervisor's salaries $40,000

Direct material $ 28

Direct labor 12

Variable overhead 6

Fixed overhead (includes

manager at $4 per unit) 10

Total unit cost $ 56

Relevant costs:

Direct material $ 28

Direct labor 12

Variable overhead 6

Fixed overhead (includes

manager at $4 per unit) 4

Total unit cost $50

6 0

3 years ago