Which of these is an advantage to setting up your business as a sole proprietorship quizlet?
|
Upgrade to remove ads Show Only SGD 41.99/year
Economics Ch. 3: Business Organizations Terms in this set (6)What are the three types of business organizations? Describe each. 1) Sole proprietorship: A business owned and operated by one person What are the advantages and disadvantages of a sole proprietorship? Advantages: Easy to start, easy to manage, profits are not shared, do not pay income taxes, and easy to end the business. Disadvantages: The one owner is fully responsible for all losses, difficult to raise capital ($), the owner often has little experience, and difficult to find qualified employees. What are the advantages and disadvantages of a partnership? Advantages: Easy to start, easy to manage, lack of special taxes, easily attract capital, larger size makes it run more smoothly, and easier to attract qualified employees. Disadvantages: Partners are responsible for each other, the business must be re-organized if one partner leaves, and the potential for conflict between partners. What are the advantages and disadvantages of corporations? Advantages: Easy to raise money, professional managers run the company, stockholders (part owners) are not responsible for losses, unlimited life, and easy to transfer ownership (stock shares) Disadvantages: Difficult and expensive to get government approval to start, stockholders (owners) have no say in how the business is run, double taxation, and more government regulation. What is a merger? A merger is when two or more companies combine into one company. How is the government like a business? The government provides goods and services to citizens, such as electrical power, waste management, and the postal service. Sets with similar termsEconomics Chapter 3 Test87 terms matthewmotamedi Economics Chapter 3 Test87 terms richard_Newman Business Ownership20 terms kpanacop 1. Y10 Business- 1. Business Ownership30 terms MrCKnowledgeOrganise Sets found in the same folderEconomics unite 4 answers not terms91 terms andy_leclaire Forms of Business Organizations27 terms ZuKu Economics Unit 532 terms lovesong918 UNIT 3 OFL59 terms Alyssa_Chavez3 Other sets by this creatorJapanese Verbs31 terms Mendizza Japanese Combination 2379 terms Mendizza Japanese Vocabulary127 terms Mendizza Japanese Combination 1252 terms Mendizza Verified questions
QUESTION When the Bell System was broken up, the old AT&T was split into a new AT&T and seven regional telephone companies. The specific reason for forcing the breakup was to increase the degree of competition in the telephone industry. AT&T had a monopoly on local service, long distance, and the manufacture of all equipment used by telephone companies; and the breakup was expected to open most of those markets to competition. In the court order that set the terms of the breakup, the capital structures of the surviving companies were specified and much attention was given to the increased competition telephone companies could expect in the future. Do you think the optimal capital structure after the breakup was the same as the pre-breakup optimal capital structure? Explain your position. Verified answer QUESTION Tannen Industries is considering an expansion. The necessary equipment would be purchased for $18 million, and the expansion would require an additional$2 million investment in net operating working capital. The tax rate is 40%. a. What is the initial investment outlay? b. The company spent and expensed $20,000 on research related to the project last year. Would this change your answer? Explain. c. The company plans to use a building that it owns to house the project. The building could be sold for$1 million after taxes and real estate commissions. How would that fact affect your answer? Verified answer
QUESTION Precious MetalMining has $17 million in sales, its ROE is 17%, and its total assets turnover is 3.2$\times$. Common equity on the firm’s balance sheet is 50% of its total assets. What is its net income? Verified answer QUESTION Pasha Corporation produces motorcycle batteries. Pasha turns out 1,400 batteries a day at a cost of $7 per battery for materials and labor. It takes the firm 22 days to convert raw materials into a battery. Pasha allows its customers 40 days in which to pay for the batteries, and the firm generally pays its suppliers in 30 days. a. What is the length of Pasha’s cash conversion cycle? b. At a steady state in which Pasha produces 1,400 batteries a day, what amount of working capital must it finance? c. By what amount could Pasha reduce its working capital financing needs if it was able to stretch its payables deferral period to 33 days? d. Pasha’s management is trying to analyze the effect of a proposed new production process on its working capital investment. The new production process would allow Pasha to decrease its inventory conversion period to 17 days and to increase its daily production to 2,400 batteries. However, the new process would cause the cost of materials and labor to increase to$12. Assuming the change does not affect the average collection period (40 days) or the payables deferral period (30 days), what will be the length of its cash conversion cycle and its working capital financing requirement if the new production process is implemented? Verified answer Other Quizlet setsChapter 14: Promoting Healthy Skin28 terms tyler_bacon55 History Test Ch 927 terms highsea506 vpw_micro_GP bacteria83 terms path2boardsPLUS Related questionsQUESTION Phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product. 15 answers QUESTION exploit a gap in the market 15 answers QUESTION An asset used as security for a loan. It can be sold by a lender if the borrower fails to pay back the loan 3 answers QUESTION The skimming pricing strategy would work best for: 3 answers Which is an advantage of a sole proprietorship form of business?Minimal paperwork and low set-up costs are two major benefits of having a sole proprietorship. In addition, there is the ease of maintaining it. In fact, according to the SBA, it's the simplest and least expensive business type you can establish.
Which is an advantage of a sole proprietorship quizlet?The main advantages of a sole proprietorship are that these businesses are easy to open or close, face few regulations, give the business owners freedom and control, and let the owners keep the profits.
What are the advantages and disadvantages of a sole proprietorship quizlet?Advantages: Easy to start, easy to manage, profits are not shared, do not pay income taxes, and easy to end the business. Disadvantages: The one owner is fully responsible for all losses, difficult to raise capital ($), the owner often has little experience, and difficult to find qualified employees.
Which of the following is a key advantage of operating a business as a sole proprietorship quizlet?Which of the following is a key advantage of incorporating a business as a sole proprietorship? It is easy to establish and requires less paperwork than other structures.
|
