Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He asks his friend, Carmen, if she'd like to join him in setting up a partnership to start the business
What is one disadvantage in joining the partnership that Carmen should consider?
A) Carmen should realize that profits in the partnership will be reduced by dividend payments to shareholders.
B) Carmen should realize that the Jeremy will have complete control over the business because it was his idea.
C) Carmen should realize that, as an owner of the business, she will be personally responsible for the debts of the business.
D) Carmen should realize that the profits of the business will also be taxed as dividend income, so she faces the potential for double taxation of that business income.
C
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Globalization is positively associated with
A) declining standards of living. B) economic growth. C) poverty. D) declining rates of investment.
Refer to Scenario 9.8 below to answer the question(s) that follow. SCENARIO 9.8: Investors put up $1,040,000 to construct a building and purchase all equipment for a new gourmet cupcake bakery. The investors expect to earn a minimum return of 10 per cent on their investment. The bakery is open 52 weeks per year and sells 900 cupcakes per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The bakery charges $8 on average per cupcake.Refer to Scenario 9.8. Total revenue per week is
A. $6,000. B. $7,200. C. $8,100. D. $9,500.
Refer to the information provided in Figure 23.2 below to answer the question(s) that follow.
Figure 23.2Refer to Figure 23.2. The line segment BD represents Jerry's
A. consumption when income equals Y1. B. consumption when income equals zero. C. saving when income is Y1. D. saving when income equals zero.
In 2013, the highest incidence of poverty was for
A. children under 18. B. women living in households with no husband present. C. Hispanic families. D. individuals over 65.