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2 years ago

Question 6 write an essay on the forms of ownership

Business

2 answers:

Ne4ueva [31]2 years ago

3 0

Answer:

huh?no one's got time to write an essay for you

hjlf2 years ago

3 0

Forms of Ownership

A majority of people aspire to own their businesses or partner with their friends and families to open a business. Like in all other instances, having the right information is always an advantage especially if one is planning to venture into something which is new to them. In business, therefore, it is essential to first of all understand the options one has especially when it comes to the legal structure of ownership. Having an understanding of the forms of ownership one is allowed under the law is necessary and will help in the final decision one makes. Many people often ignore some of the simple instructions or pieces of advice they find. The results for such often include regret and run-ins with the law. Therefore, to avoid extra costs while setting up a startup, one needs to have a deep understanding of the following options of ownership:

Sole Proprietorship
When people think of starting their own businesses, a majority think of venturing out on their own. At first, people prefer to walk alone and invest all their savings in an idea. When people start businesses by themselves it is called a sole proprietorship. In such a situation, a person is considered one with the business. This means that a person owns all the business’s assets as well as all the generated profits. Moreover, one is also considered responsible for all the debts and liabilities associated with the business.

People prefer sole proprietorship because they are the least expensive to start as well as organize. Additionally, one does not have to share the profits and oversees all the operations of the business. However, it is important to note that they lack limited liability which means that any losses directly affect the owner. The above means that one’s personal property could be at risk if the business defaults in payment of certain debts.

Partnerships
Unlike sole proprietorships, partnerships involve instances where several people share ownership of a business. However, like sole proprietorships the business is considered one with the owners. In a partnership, there is always a written legal document that outlines how the profits and losses will be distributed, decisions will be made in the business, impasses will be resolved, and also how the business will admit other partners in the future. Partnerships tend to be a lot stronger than sole proprietorships because the losses are shared which would mean that the weight is distributed and no single person bears a heavier burden than the other.

Corporations
Corporations are set up differently and unlike partnerships and sole proprietorships, they are viewed as separate entities from their owners. As witnessed in a number of occasions, corporations can be sued, enter into different contractual agreements, and they can also be taxed. Owners of a corporation are known as shareholders and the often select directors and managers who oversee the corporation on their behalf. The ownership of a corporation changes from time to time without affecting the state or workings of a corporation.

Limited Liability Company
Though previously non-existent, a Limited Liability Company combines the tax efficiencies and operative flexibility of partnerships and the limited liability attributes of corporations. However, while forming an LLC, the process is quite formal and mainly encompasses a lot more details including the duration of the LLC.

In conclusion, understanding these different forms of ownership is essential and would help one in deciding which business venture to pursue.

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4 years ago

Riley Company promises to pay Janet Anderson or her estate $150,000 per year for the next 10 years, even if she leaves the compa

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The Answer is explanatory so it is given as under:

Explanation:

Part 1. At the start of the year:

The part of the salary includes $150,000 per year for the next 10 years and this must be recorded as an deferred compensation liability. All we have to do is to calculate the present value of the annual salary payments.

Present Value = Annual Payment * Annuity factor

And for Annuity factor we will use 5% rate of interest.

Annuity Factor = (1 - (1-r)^n) / r

Here

r = 5%

n = 10 years

Which means

Annuity Factor = (1 - (1 + 5%)^10) / 5% = 7.722

Hence

Present value = $150,000 * 7.722 = $1,158,260

So the journal entry would be as under:

Dr Deferred Compensation expense $1,158,260

Cr Deferred Compensation Liability $1,158,260

Part 2. At the end of the Year 1:

At the first year end, the annual payment of $1,158,260 will be discounted back by using the following formula:

Discounted Back Amount = Annual Amount * (1- (1+r)^n)

Remember for the first year n is 10, for second n is 9 and so on.

Discounted Back Amount = 150,000 x (1 - 0.614) = $57,913

Dr Deferred Compensation Expense $57,913

Cr Deferred Compensation Liability $57,913

Part 3. And when the first payment of the salary is made, the journal entry would be:

Dr Deferred compensation Liability $ 150,000

Cr Cash Account $150,000

Likewise we will till the year 10 and will record the part 2 and part 3 until at the end of the year 10, the whole of the deferred tax liability is reduced to zero.

The life insurance policy payments can not be offset against the deferred compensation liability because it will be accounted for as a different transaction and hence must not be treated as Riley desires.

So the Cash surrender value will be treated as an asset and annual increase in this asset would be treated as an income.

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3 years ago

Let $S$ be the set of complex numbers of the form $a + bi,$ where $a$ and $b$ are integers. We say that $z \in S$ is a unit if t

lakkis [162]

Answer:

Number of units possible in S are 4.

Explanation:

Given S is a set of complex number of the form $a+bi$ where a and b are integers.

$z\in S$ is a unit if $w\in z$ exists such that $zw=1$ .

To find:

Number of units possible = ?

Solution:

Given that:

$zw = 1$

Taking modulus both sides:

$|zw| = |1|$

Using the property that modulus of product of two complex numbers is equal to their individual modulus multiplied.

i.e.

$|z_1z_2|=|z_1|.|z_2|$

So,

$|zw| = |1|\\\Rightarrow |zw| =|z|.|w| =1\\\Rightarrow |z|=\dfrac{1}{|w|}$ ......... (1)

Let $z=a+bi$

Then modulus of z is $|z| = \sqrt{a^2+b^2}$

Given that a and b are integers, so the equation (1) can be true only when $|z| = |w| =1$ (Reciprocal of 1 is 1). Modulus can be equal only when one of the following is satisfied:

(a = 1, b = 0) , (a = -1, b = 0), (a = 0, b = 1) OR (a = 0, b = -1)

So, the possible complex numbers can be:

$1.\ 1 + 0i = 1\\2.\ -1 + 0i = -1\\3.\ 0+ 1i = i\\4.\ 0 -1i = -i$

Hence, number of units possible in S are 4.

6 0

3 years ago

Question 6 write an essay on the forms of ownership​

Question 6 write an essay on the forms of ownership