Explain the primary advantages of corporate form of business.

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Answer 1

Question

Chapter 11, Problem 1Q

To determine

Explain the primary advantages of corporate form of business.

Expert Solution & Answer

Explanation of Solution

Corporation: A business concern where there is a separate legal entity and are owned by stockholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

The primary advantages of corporate form of business are as follows:

Transferability of ownership is easy in the corporate form of business.
Stockholders has limited liability, and they are not liable for corporation’s debts.
Investors can purchase or sale their shares in small quantities.

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Students have asked these similar questions

Grass Reed Bayou is a bottling company in The Netherlands. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,000, and management budgeted $320,000 of direct labor costs. During the year, the company incurred the following actual costs. Direct materials used $ 382,000 Direct labor 313,000 Factory overhead 650,700 The January 1 balances of inventory accounts are shown below. Materials-all direct $ 64,000 Work-in-process 41,400 Finished goods 25,600 The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. The cost of goods manufactured during the year is:

Magna Carta Interiors is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 150,000 and estimated factory overhead is $1,140,000. The following information is for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $ 25,700 Work-in-process (All Job X) 55,100 Finished goods 107,300 Materials purchases $ 174,000 Direct materials requisitioned: Job X $ 75,700 Job Y 69,700 Direct labor hours: Job X 8,700 Job Y 7,200 Labor costs incurred: Direct labor ($7.70 per hour) $ 122,430 Indirect labor 50,100 Factory supervisory salaries 12,800 Rental costs: Factory $ 11,000 Administrative offices 4,900 Total equipment depreciation costs: Factory $ 12,100 Administrative offices 4,500 Indirect materials used $ 30,400 The total…

Grass Reed Bayou is a bottling company in The Netherlands. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,000, and management budgeted $320,000 of direct labor costs. During the year, the company incurred the following actual costs. Direct materials used $ 382,000Direct labor 313,000Factory overhead 650,700The January 1 balances of inventory accounts are shown below. Materials-all direct $ 64,000Work-in-process 41,400Finished goods 25,600The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. The cost of goods manufactured during the year is:

Answer 2

Question

Chapter 11, Problem 1Q

To determine

Explain the primary advantages of corporate form of business.

Expert Solution & Answer

Explanation of Solution

Corporation: A business concern where there is a separate legal entity and are owned by stockholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

The primary advantages of corporate form of business are as follows:

Transferability of ownership is easy in the corporate form of business.
Stockholders has limited liability, and they are not liable for corporation’s debts.
Investors can purchase or sale their shares in small quantities.

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Answer 3

Question

Chapter 11, Problem 1Q

To determine

Explain the primary advantages of corporate form of business.

Expert Solution & Answer

Explanation of Solution

Corporation: A business concern where there is a separate legal entity and are owned by stockholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

The primary advantages of corporate form of business are as follows:

Transferability of ownership is easy in the corporate form of business.
Stockholders has limited liability, and they are not liable for corporation’s debts.
Investors can purchase or sale their shares in small quantities.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 1Q

To determine

Explain the primary advantages of corporate form of business.

Expert Solution & Answer

Explanation of Solution

Corporation: A business concern where there is a separate legal entity and are owned by stockholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

The primary advantages of corporate form of business are as follows:

Transferability of ownership is easy in the corporate form of business.
Stockholders has limited liability, and they are not liable for corporation’s debts.
Investors can purchase or sale their shares in small quantities.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1Q

To determine

Explain the primary advantages of corporate form of business.

Expert Solution & Answer

Explanation of Solution

Corporation: A business concern where there is a separate legal entity and are owned by stockholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

The primary advantages of corporate form of business are as follows:

Transferability of ownership is easy in the corporate form of business.
Stockholders has limited liability, and they are not liable for corporation’s debts.
Investors can purchase or sale their shares in small quantities.

Answer 6

Chapter 11, Problem 1Q

To determine

Explain the primary advantages of corporate form of business.

Expert Solution & Answer

Explanation of Solution

Corporation: A business concern where there is a separate legal entity and are owned by stockholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

The primary advantages of corporate form of business are as follows:

Transferability of ownership is easy in the corporate form of business.
Stockholders has limited liability, and they are not liable for corporation’s debts.
Investors can purchase or sale their shares in small quantities.

Answer 7

Chapter 11, Problem 1Q

To determine

Explain the primary advantages of corporate form of business.

Answer 8

Expert Solution & Answer

Explanation of Solution

Corporation: A business concern where there is a separate legal entity and are owned by stockholders are classified as corporation. Transfer of ownership and raising funds are easy in this form of organization. No personal legal liability exists among the shareholders.

The primary advantages of corporate form of business are as follows:

Transferability of ownership is easy in the corporate form of business.
Stockholders has limited liability, and they are not liable for corporation’s debts.
Investors can purchase or sale their shares in small quantities.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 11 - Prob. 1Q Ch. 11 - Prob. 2Q Ch. 11 - Prob. 3Q Ch. 11 - Explain each of the following terms: (a)...Ch. 11 - What are the differences between common stock and...Ch. 11 - What is the distinction between par value and...Ch. 11 - What are the usual characteristics of preferred...Ch. 11 - What items are included in Accumulated Other...Ch. 11 - What is treasury stock? Why do corporations...Ch. 11 - How is treasury stock reported on the balance...

Explain the primary advantages of corporate form of business.

Explain the primary advantages of corporate form of business.

Explanation of Solution

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