Describe the advantages and disadvantages of a general partnership.
What will be an ideal response?
Advantages: Owners report their share of losses or profits on their own personal income tax returns; dissolution is easy
Disadvantages: Requires more paperwork than a sole proprietorship; each partner is assumed to be involved in all decisions; partners are generally held to be jointly liable; partners have the responsibility to watch out for the best interest of the other partner
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If a financial statement is labeled "pro forma" this means that the statement was prepared by a professional accountant (usually the firm's auditor) following a prescribed format.
Answer the following statement true (T) or false (F)
Which of the following statements about personality is most accurate?
A. Personality is dynamic and typically changes several times as a person matures. B. Personality is the energizing force that makes consumer behavior purposeful. C. Most personality traits are formed during adulthood and don't change thereafter. D. People with compliant personalities prefer lesser known brand names. E. Most personality traits are inherited or formed at an early age.
An adjustment in the pro forma statement may be necessary for ________ expenses in line with known changes to these expenses that may not correspond directly with sales or production
A) cash B) credit C) selling, general, and administrative D) cash and credit
Which of the following is NOT a typical characteristic of a fronting loan made to an international subsidiary?
A) The parent makes a deposit equal to the size of the desired loan into a large commercial bank. B) The bank lends to the subsidiary firm an amount equal to the parent deposit at a slightly higher interest rate. C) The lending bank is located in the subsidiary's country. D) All of the above are typical characteristics of a fronting loan.