[APPENDIX] What are the advantages of organizing a company as a corporation instead of a partnership or sole proprietorship?
Sole proprietorships and partnerships are not considered separate entities for legal or tax purposes.
Owners of corporations are not liable for debts of the corporation, whereas owners of sole proprietorships and partnerships are. The owners of sole proprietorships and partnerships pay their individual share of the business's income taxes, while stockholders of corporations do not. This may or may not be an advantage.
You might also like to view...
Which of the following would be a reasonable accommodation under the ADA?
a. modifying a job description and job duties to accommodate the disabled worker b. assigning a shadow employee to work with the disabled worker c. providing part-time schedules to accommodate the disabled worker d. creating a new job that the disabled worker can perform
Which of the following statements is correct?
A. A firm has estimated that it will save $40,000 in utility expenses annually if it replaces an old machine with a new, more technologically advanced machine. The $40,000 is a relevant cash flow that should be included in the computation of the machine's supplemental operating cash flows. B. Inflation does not need to be considered in capital budgeting analyses. C. The tax deduction associated with a project's depreciation expense is not a relevant cash flow in capital budgeting analyses. D. The sunk costs associated with a project are relevant cash flows that should be included in capital budgeting analyses. E. The cost of advertising a product that the firm currently produces and sells is a relevant cash flow that should be included in the evaluation of a new capital budgeting project.
While hiring candidates for the post of clothing manufacturing engineer, the recruiters at Afrophasi, an apparel manufacturing company, test the technical knowledge of the candidates by asking them a fixed set of questions. In the context of employee selection, this scenario most likely illustrates _____.
A. structured interviews B. open-ended interviews C. exit interviews D. appraisal interviews
The volume that results in total revenue being equal to total cost is the
a. break-even point. b. marginal volume. c. marginal cost. d. profit mix.