Indicate whether each of the following statements is true or false._____ a) Double taxation refers to the fact that both a partnership and its partners must pay income tax on the earnings of the partnership._____ b) A sole proprietorship is an accounting entity separate from its owner._____ c) Limited liability is a benefit to both corporations and partnerships, but not to sole proprietorships._____ d) Unlike a partnership, a corporation is not terminated when a major stockholder withdraws his or her investment._____ e) Sole proprietorships are, generally, subject to fewer governmental regulations than corporations.
What will be an ideal response?
a) This is false. Double taxation refers to the fact that a corporation's dividends are taxable to both the corporation and its shareholders.
b) This is true. While a sole proprietorship is not a separate legal entity from its owner, it is a separate accounting entity.
c) This is false. Limited liability is not a benefit to partnerships.
d) This is true. A corporation is not terminated upon withdrawal of a stockholder, but a partnership is terminated upon withdrawal of a partner.
e) This is true. Corporations are typically subject to greater governmental regulations.
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A(n) ________ is a type of plea where the defendant pays a penalty without admission of guilt
A) nolo contendere B) arraignment C) indictment D) plea bargain
A debt ratio of 2.2 means you have $2.20 of assets for each $1 of total liabilities
Indicate whether the statement is true or false.
As we waive the conditions of perfect capital markets and include taxes, M&M suggest that the average cost of capital for the firm will remain unchanged with the addition of debt
Indicate whether the statement is true or false
Circus Pizza contracted with Art to run its birthday parties. Art's responsibilities included supervising the children and organizing the games. Circus did not investigate Art's background, which included a history of assaulting children. Art assaulted a 7-year-old girl in the restaurant's kitchen during a birthday party. Circus Pizza A)cannot be liable for the damages because Art committed an
unforeseeable intentional tort. B)cannot be held liable for the damages because Art's conduct was not in the scope of employment. C)may be held liable on the basis of negligent hiring. D)may be held liable only if Circus actually knew of Art's background.