Brief Exercise 10-1 (Static) Cite advantages and disadvantages of a corporation (LO10-1)Waldo is planning to start a clothing store helping big and tall men blend in with the crowd. Select the appropriate options to explain toWaldo the advantages and disadvantages of a corporation in comparison to a sole proprietorship or partnership.1. Limited Liability2. Raising Capital3. Additional Taxes4. More Paperwork5. Unlimited Liability6. Inability to Raise Capital7. Fewer Taxes8. Less Paperwork

Meaning of corporation- Corporation means a legal entity that is considered to be separate from its…

Answered: Waldo is planning to start a clothing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Determine whether each describes a sole proprietorship, a general partnership, or a corporation. Note that a characteristic may apply to more than one type of business structure. : View the image for the table to help answer.
Use the following options and match them with the descriptions. Has the most potential for conflict Get to keep all profits 1. Sole Proprietorship Limited Liability 2. Partnership owners can specialize 3. Corporation profits taxed twice Easiest legal process to start > > > >
May the fruit vendor recover the money he is owed from Paletas by Paloma's shareholders? No, because sole proprietorships do not have any shareholders. OYes, if Paletas by Paloma does not have sufficient funds to pay the fruit vendor. Yes, because there is no limited liability in sole proprietorships. O No, because shareholders in a sole proprietorship enjoy limited liability.
Reed, Isaiah, Nia, and Taylor are all lawyers. After several years of working for big firms, they decide to pool their resources and start their own law practice together. The four of them will make all their business decisions together and will share all of the profits and financial risk. Their new law firm is an example of which business organization? A. Franchise B. Corporation C. Sole Proprietorship D. Partnership
Describe 3 investment products that corporations can use to raise money from investors. Explain the characteristics of each product and the priority of their investors to get money back in case of bankruptcy. Describe with examples how banks help create money in the financial system
Identify whether each of the following scenario is an advantage or a disadvantage of the corporate form of business. Justify your answer. А. 1. Green Company can have many owners in their business. Shareholders of White Company need to pay for corporate tax on dividend earning to tax authority. Yellow Company can buy and sell property based on board of director decision making. The shareholder of Black Company can buy and sell shares without affecting the company operation in daily business operation. Red Company must comply with Malaysian Companies Act 2016. President of Mawar Company can delegate the responsibility and authority for 2. 3. 4. 5. 6. company. The accounts and balances that follow are from Comel Bhd's records on 31 December 2020. В. Items Preferred Share, 9 percent cumulative, 2,000 shares issued and outstanding Ordinary Share, 16,000 shares issued, and 15,500 shares outstanding Retained Earnings Treasury Share, Ordinary (500 shares, at cost) RM 200,000 160,000 30,000…
As a professional accountant, Lisa works for an accounting firm that provides advisory services to various clients. In a particular transaction, Lisa finds herself representing more than one client, which creates a conflict of interest situation. Lisa's accounting firm is engaged to provide financial advisory services for two clients: Company A and Company B. These companies are involved in a potential merger transaction, and both have sought assistance from Lisa's firm. However, Lisa realizes that the interests of Company A and Company B may not align completely, leading to a conflict of interest. a) What actions should Lisa take to effectively manage the conflict of interest situation that arises when representing both Company A and Company B in their potential merger transaction?
which type of organization should be formed. Rob and Bran want to form a snow removal business. They are deciding between a general partnership and a limited liability company. Bran says it is important that the two have limited liability and do not pay corporate income taxes.
Describe how a business charitable contribution is treated for tax purposes if the business owner is: A sole proprietor A 100% corporate shareholder A partner in a partnership A 100% S corporation shareholder Be sure to provide an example of a requirement of a qualified charitable contribution. Also, provide an example of how the different rules might affect a decision to make a charitable contribution. Please cite your sources.
One of the disadvantages associated with sole proprietorships is that: raising working capital is difficult. acquiring total ownership of the business's finances is not easy. O creating a sole proprietorship is a complicated process. obtaining licenses and permits is difficult. making autonomous business decisions is difficult.
Why the maximization of shareholders wealth overrules the objective of maximizingearnings?b) How does being a limited partner in a business enterprise differ from being a stockholder,assuming the same percentage of ownership?c) If you are scheduled to receive a certain sum of money five years from now but wish tosell your contract for its present value, which type of compounding would you prefer tobe used in the calculation? Why?d) John Selvester is 47 years old and is presently experiencing the “good” life. As a result,he anticipates that he will increase his weight at a rate of 4 percent a year. At present heweighs 250 pounds. What will he weigh at age 60?e) Allen wishes to purchase an annuity contract that will pay him $8,000 a year for the restof his life. The State Life Insurance Company figures that his life expectancy is 25 years,based on its actuary tables. The company imputes a compound annual interest rate of 6percent in its annuity contracts. How much will Allen have to pay…
Moving to another question will save this response. Quèstion 9 The corporate form of business has all the following advantages EXCEPT: O A. The life of a corporation is unlimited and ease of capital accumulation. O B. No mutual agency for stockholders. OC. Stockholders have unlimited liabiliy. O D. Separate legal entity.

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