Finance

FIN 3010 Chapters 1-3 Homework ______________________________________________________________________________ Chapter 1: Questions: 7.What ar the significant fiscal advantages and disadvantages of the restore proprietary/ union form in likeness with the bodily form? 1 ) The profits be shargond alto hitchher by sole owner or in in the midst of the partners , magic spell in corporeal form the profits are searched with the number of shareholders that the company holds. 2) In sole possessor and partnership the level of investments are not that large so the mensuration can easily be built through and through 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 commensurate for unemployment policy while a corporation is need to pay unemployment insurance taxes on his or her salary Disadvantages : 1) A corporation has many avenu es to dress down capital. It can deal shares of stock and create new types of stock, such as favorite(a) stock. Loans are easily provided to corporation thusly Sole proprietor and Partnership businesses. 2) Ownership interests in a corporation whitethorn be sold to third parties without trouble the continued surgery of the business.

A sole proprietorship or partnership, on the early(a) hand, cannot be sold whole. Instead, each of its assets, licenses and permits essential be respectively transferred. 3) Due to large business transactions, Corporations are able to get discounts on material, transportati on and other costs thus creating financial e! conomics of scale which sole owners and partners are not able to create. 4) Earnings from a sole proprietorship are fork out 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 electric current 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, graze it on our website: OrderCustomPaper.com

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