Mike owns a small but successful coffee house. He decides to incorporate. Considering only tax benefits, should Mike form a C corporation or a subchapter S corporation and why? Discuss taxation under both forms
Mike should form an S corporation in order to avoid double taxation. Any corporation not meeting the requirements for an S corporation is automatically a C corporation. A C corporation pays tax on the income generated by the business, and the shareholders pay tax on that same income when it is distributed as dividends. Some closely held corporations can avoid this double taxation by electing to be treated as S corporations. An S corporation is taxed as a pass-through entity. The corporation itself is not taxed on its income; rather, the shareholders pay tax on their pro rata shares of the corporation's income.
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Kelly Company exchanged inventory items that cost $47,000 and normally sold for $75,000 for a new delivery truck with a list price of $77,000. The delivery truck should be recorded on Kelly's books at
A) $47,000 B) $75,000 C) $77,000 D) $79,000
Which statement represents a challenge to Evan and Freeman's defense of the stakeholder theory against the economic model of corporate social responsibility?
A. The stakeholder theory cannot answer the question as to how, exactly, a manager should go about balancing the diverse and competing claims of all parties. B. Courts and legislatures have recognized that the rights and interests of various constituencies affected by corporate decisions limit managers' fiduciary responsibility. C. There is no guarantee that when managers produce profits, they will serve the interests of either stockholders or the public. D. The law now recognizes a wide range of managerial obligations to such stakeholders as consumers, employees, competitors, the environment, and the disabled.
For service organizations, customer relations are part of the supply chain and customers are part of the value chain
Indicate whether the statement is true or false
Processing functions in a just-in-time system can be referred to as all of the following except ________
a. cost areas b. manufacturing cells c. work centers d. All of the choices refer to processing functions in a just-in-time system.