Explain how income is taxed in a sole proprietorship, a partnership, and a C corporation. Include in your discussion how dividends are taxed.
What will be an ideal response?
Because there is no legal difference between the sole proprietor and the business, any income to the business is treated as personal income to the sole proprietor and is taxed at personal income tax rates.?Income in a partnership is distributed according to the partnership agreement and is taxed as personal income to the partners.?Because a corporation is a legal entity, income tax is paid by the corporation. Dividends paid to stockholders are taxed as personal income to the stockholders, resulting in double taxation on the dividends, once as corporate income and again as individual stockholder income.
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Which of the following is a characteristic of low-context cultures?
A. People in authority are personally responsible for the actions of their subordinates. B. Relationships between people are relatively long lasting. C. Authority is diffused throughout the bureaucratic system. D. Insiders and outsiders are easily distinguishable.
A Eurobond is a bond issued by an international borrower and sold to investors in countries with currencies other than the country in which the bond is denominated
Indicate whether the statement is true or false
Mayora is a retail clothing chain selling Pollo and other quality brand clothing. Mayora has very high prices, usually 30% over suggested retail price. Pollo tells Mayora it is fed up with this high pricing. Pollo tells Mayora to stop selling its products above list price or it will cut off sales to Mayora. Is this a possible violation of the antitrust laws?
a. no; such actions are specifically prohibited under the Robinson-Patman Act b. yes; such actions violate the interlocking directorate section of the FTC Act c. yes; such actions are a conspiracy to fix price illegal under the Sherman Act d. yes; such actions may well be held a vertical restraints of trade e. none of the other choices
Which of the following is one of the main issues businesses face with their contingent workers?
A. classifying who actually qualifies as a contingent worker B. deciding the remuneration for contingent workers C. allocating work resources to contingent workers D. providing the option of a compressed workweek to contingent workers