How is a legal entity, such as a corporation, similar to a person? If you owned a business, why might you want it to be incorporated?
What will be an ideal response?
Like a person, a corporation has a name of its own; it can buy, sell, and own property and it is legally responsible for its actions. It is recognized by the law as an individual. Corporations - not the owners, managers, or employees - are legally responsible for corporate debts and liabilities. The personal property of the owners cannot be taken to pay corporate debts. Corporations are also permitted by law to sell shares to raise money. Corporations are easier to sell than other forms of business because the new owners will not be personally responsible for the corporation's debts.
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Habitual decision making occurs when
A. a decision requires extended problem solving. B. retailers stimulate sales by suggesting complementary merchandise. C. a decision process involves little or no conscious effort. D. the purchase decision involves a lot of risk and uncertainty. E. a decision requires assistance from sales associates.
Which of the following items relating to direct labor employees might be charged to specific jobs in work in process rather than factory overhead?
a. Make-up guarantee b. Idle time c. Shift premiums d. Fringe benefits
Under the direct method, cash paid to suppliers can be computed as cost of goods sold for the period
a. minus a decrease in inventory and plus an increase in accounts payable. b. plus a decrease in inventory and minus an increase in accounts payable. c. minus an increase in inventory and plus an increase in accounts payable. d. plus an increase in inventory and minus an increase in accounts
Advertising has been able to cross cultural boundaries and make products appeal to a variety of cultures
Indicate whether the statement is true or false.