Answer:
Has its profits taxed as personal income
Explanation:
Sole proprietorship: The sole proprietorship is the person who is the single owner of a company. He is personally liable for all the acts which are held in the company. In this, there is no separate entity between the company and its members.
Moreover, during filling the return, the owner has to file a tax based on the profits on its personal income
Its owner choice to continue the business for longer period or for a shorter period. So, it does not has unlimited life, neither it have limited financial liability nor it involves significant legal costs during the formation process.
So, a sole proprietorship has its profits taxed as personal income.
Answer:
Limited liability partnership (LLP) / limited liability company (LLC)
Explanation:
Limited liability partnership and limited liability companies work very similarly and their main characteristics are:
- they are separate legal entities, this means that their owners are separate from them.
- since they are separate legal entities, the owners have limited liability
- they are not taxed directly, they act as pass through entities and their owner's pay income taxes
- they both need to be incorporated by the state government as distinct legal entities
Answer:
Total cost per unit will decrease.
Explanation:
Solutions:
Variable cost is 0.5 of the total cost
Given that total cost=fc+vc
Find FC since VC is given
Therefore :
1st month cost behavior
$60*0.5 = $30
$300,000/10,000 = $30 (fixed)
2nd month cost behavior
$300,000/10,500 = $28.57(fixed)
Add the different months together
Then have
30+28.57 = 58.57 < 60
Answer:
417 units
Explanation:
The formula to compute the break-even point in units is shown below:
= (Fixed expenses ) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
So, the break-even point in units is
= ($5,000) ÷ ($20 - $8)
= $5,000 ÷ $12
= 417 units
So, the 417 units is to be sold for break-even
Answer:
As the question was not complete. I have attached the complete question in the attachment. Please refer to attachment.
Explanation:
<em>By using, LD = 95- 3w and w1 = 7.25 and w2 = 9. We get,
</em>
<em>LD1 = 95-3(7.25) = 73.25
</em>
<em>LD2 = 95-3(9) = 68
</em>
Elasticity = Change in labor demand/ change in wage rate = ((68- 73.25)/ 73.25)/ ((9-7.25/7.25)) = -0.33
The 11 percent change in the wage rate causes, 33% change in labor demanded, as shown by the elasticity, the labor demand decreases with increase in wage rate.