Finance

FIN 3010 Chapters 1-3 Homework ______________________________________________________________________________ Chapter 1: Questions: 7.What ar the significant monetary advantages and disadvantages of the restore proprietary/ union form in equality with the bodily form? 1 ) The net income be shargond completely by sole owner or in in the midst of the partners , term in corporeal form the profits are searched with the number of shareholders that the company holds. 2) In sole proprietor and partnership the level of investments are non that large so the mensuration can easily be built done profits. 3) mend proprietorships and partnerships cost less to establish while corporate forms throw off hugh legality that be. 4) Sole proprietors and partners are not li fitted for unemployment policy while a corporation is needed to pay unemployment insurance taxes on his or her salary Disadvantages : 1) A corporation has many avenues to dress down cap ital. It can cheat shares of stock and create new types of stock, such as best-loved stock. Loans are easily provided to corporation thusly Sole proprietor and Partnership businesses. 2) Ownership interests in a corporation may be sold to third parties without trouble the continued accomplishment of the business.

A sole proprietorship or partnership, on the different hand, cannot be sold whole. Instead, each of its assets, licenses and permits essential be on an individual basis transferred. 3) Due to large business transactions, Corporations are able to thwart discounts on material, transportation an d other costs thus creating financial econo! mics of scale which sole owners and partners are not able to create. 4) Earnings from a sole proprietorship are turn in to self-employment taxes, with a corporation, only salaries are subject to such taxes while earnings are not subjected to taxes. Problems: be Records and Cash lean Example 1.1, Page 9 1.Sussman Industries purchased a bore motorcar for $50,000 and paid cash....If you want to get a upright essay, roll it on our website: OrderCustomPaper.com

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