sole proprietor has unlimited liability in meeting the debts of his or her business. True or False
Q: Evaluate and explain why the concept of unlimited liability is a concern for the sole proprietor.
A: Sole proprietorship is a type of business ownership where all the ownership and control lies in the…
Q: 17. Elizabeth Ellis sells a business asset for $10,000. Assume that Elizabeth has owned the asset…
A: Depreciation is reduction in the value of the assets from its original value. It is the accounting…
Q: Explain the three legal forms a business could take and state its conclusion
A: Business: A business is characterized as an association or venturesome element occupied with…
Q: Zenith Steel Company operates a prosperous business. In January, Zenith’s chief executive officer…
A: Case Study- R is the president and CEO of company Z. R is a board member of the company also and…
Q: Probate is a legal procedure that establishes the validity of a will and then distributes the…
A: A legal procedure that mainly determines the assets of the deceased person and who all are the…
Q: Sally and Tom decide to go into business, selling discounted merchandise through their website…
A: A code of ethics in business is a collection of guiding principles which are created to ensure a…
Q: Buck is a director on the board of Construction Corporation. The board delegates work to Don,…
A: Management is the running of an organization whether it is a non-profit organization or a business.…
Q: Directors may leave the service of a board in several ways, Describe the main ways in which the…
A: There are different organizations and industries that are active these days. There are different…
Q: If the principal loses their mental capacity to continue the agency relationship, the agent may…
A: An organization terminates implicitly by any number of situations in which it is reasonable or…
Q: The application of the doctrine separate legal entity has rendered the person who act on behalf of…
A: A company is a “Separate Legal Entity” having its own identity distinct from its members. It states…
Q: Sole proprietorship is a legal entity created by a state, separate and distinct from its owners and…
A: hence this statement is
Q: Pritchard & Baird was a reinsurance broker. A reinsurance broker arranges contracts between…
A: Misappropriation of funds is described as an unlawful, improper and unauthorized usage of property…
Q: Statement I: A special power of attorney is an instrument in writing by which one person appoints…
A: The concept of agency refers to assigning another to act on your behalf for a stated purpose. It is…
Q: a Offer b. Acceptance c. Consideration C. a. Competent Parties = Intention to create a binding…
A: Contract hypothesis is the investigation of how individuals and associations build and foster…
Q: Joint and several liability is apportioned among two or more parties or borne by only one or a few…
A: true
Q: TRUE OR FALSE A Corporation has powers, attributes, and properties expressly authorized by law.
A: True
Q: Explain.
A: Suppose you have a restaurant. You appointed a manager to operate the business. Your manager always…
Q: Glenn refuses an invitation to become a partner of Dorothy and Cynthia in a retail grocery business.…
A: This is case of partnership by estoppel. Partnership by estoppel refers to a situation where a…
Q: Explain between Casual Confidentiality and Legal Confidentiality
A: Confidentiality refers to a set of guidelines through which access to a set of information is…
Q: Naquin, Dubois, and Hoffpauir incorporated to form Air Engineered Systems and Services Inc. Dubois…
A: If the plaintiff in this scenario satisfies the condition, they cannot be denied the demand for…
Q: Explain the concept of Unlimited liability.
A: A business organization is denoted as a unit that is started to carry on commercial and…
Q: Distinguish between articles of incorporation and by-laws
A: Articles of Incorporation include are: 1. The name of the corporation 2. The name and address of…
Q: Describe instances in which the interests of the management of a company might conflict with those…
A: Conflict between management and shareholders is referred to as agency costs and it is beared by…
Q: ___________________ is the process of establishing the validity of a will.
A: A will or testament is nothing but the legal document that expresses the whished or will or of the…
Q: TRUE OR FALSE A Partnership is an artificial being created by operation of law.
A: There are a number of organizations that are active these days. There are a number of commodities…
Q: Unlimited liability is an advantage of a sole proprietorship; True or False
A: Ownership of business implies about having control in business working based upon legal structure…
Q: Spence was a promoter in the incorporation of a new business. The new corporation had not yet been…
A: Yes, Spence is correct in this situation.
Q: define and explain what is Privileges, and Probable Cause
A: The word "privilege" is based on the Latin privilegium, which means "a rule for one party only," and…
Q: 86. The following rights of partner who has not caused dissolution wrongfully, except:
A: A partnership business form involves two individuals or more that collaborate with each other…
Q: ._______ A legal document that describes the purpose of the corporation.
A: Corporation is said as a type of ownership in which the business and its owners are refered as…
Q: Nasser and Khalil are partners in a bike business. One of their bike models malfunctioned and many…
A: The correct option is, they would not be personally liable for the injuries. In limited liability…
Q: ELABORATE any FIVE(5) effects of the company’s incorporation with the relevant provisions of law
A: A company refers to a legal entity that is formed by association of a group of individuals to engage…
Q: The application of the doctrine separate legal entity has rendered the person who acts on behalf of…
A: There is an exception to the Doctrine of Separate Legal Entity as this doctrine can be misused and…
Q: Snitch, an officer of Undergrowth Corporation, tells Gumst about fraudulent dealings going on within…
A: The correct answer is
Q: Compare the actual governance of closely held corporations, the actual governance of publicly held…
A: Corporate governance is the combination of laws, rules, and processes in which businesses are…
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- What it is talking about? 1. Incorporation of a company Ø Minimum number of shareholders and directorsEvery company requires at least one member, a director and a company secretary. Have at least one director who is a natural person (s457) Ø Effects of incorporation The company is capable of exercising all the functions of an incorporated company (e.g. separate legal entity, artificial person like entering into contracts in its own name, or taking legal action against other), and has perpetual succession. On and after the date of incorporation, the founder members, and any other persons who may from time to time become the company’s members, are liable to contribute to the assets of the company in the event of the company being wound up as is mentioned in Cap. 32.èLimited LiabilitiesNo notice to terminate is required for a tenancy for years. O True O False! Required information [The following information applies to the questions displayed below.] Doyle Company issued $394,000 of 10-year, 7 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $79,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 1. Required a. Prepare the journal entries for these events, and post them to T-accounts for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Prepare the journal entries for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal 1 Jan 01 Bonds payable Cash Debit Credit
- 1.1) Differentiate between the different types of partnerships. In your answer:• identify the types of partnership• explain the characteristics of that particular partnership• explain the liability of each of the partners with respect to the type ofpartnership 1.2) Judy is a shareholder in Pat-X Ltd. She believes that she can use the sharecertificate to make a payment. She wants to exchange the certificate for apair of shoes. The last time she checked the shares were valued at a R1000and she figures she could put them to good use. Can she do so? Discuss withreference to the nature of a share certificate.27. William has a bakery with total assets of P4,000,000 inclusive of a lot with a book value of P1,200,000. Gross income from sales of bread P300,000 Interest on promissory notes of retail store clients 12,000 Royalties on sale of recipe books 36,000 Dividend income from domestic stocks 10,000 Note that William's total asset i s P2,800,000, excluding the lot. Hence, William's business qualifies as a BMBE. If William obtained a certificate of authority to operate as a BMBE, the following items of operating income are exempt from income tax а. Р 300,000 О Б.Р346,000 О с. Р312,000 O d. P 358,00015. The annual increase diene cash duander value of a life insurance policy: a. Is taxed when the individual dies and the heirs collect the insurance proceeds. b. Must be included in gross income each year under the original issue discount rules. c. Reduces the deduction for life insurance expense. d. Is not included in gross in ych y sach year because of the substantial restrictions on gaining access to the policy's value.
- REA Associations Bentley Restorations Company restores and sells top-end classic and antique automobiles. Most of its customers are private collectors, but some are investors who buy multiple cars and hold them for resale. Bentley extends no credit terms. All sales are for cash. 1. Which of the relationships in the diagram models the entity associations for Bentley Restorations? 2. Explain your answer:3 a joint life policy pays A after the first insured dies B after the last insured dies C after each insured dies D one-half of the face amount after each insured died.Q 3. Two companies, ABC and XYZ were incorporated in year 2020 as public (ABC Ltd. Co.) and private (XYZ Pvt. Ltd Co.) company respectively. Give a brief description of privileges enjoyed and restrictions imposed on these companies. If you wish to start any business what type of company you would choose to incorporate. Explain the reason behind your decision.
- Kristen signs a one-year lease for a mobile home owned by Lamont. If Kristen dies during the lease term, the lease interest. 1. automatically renews 2. returns to Lamont 3. passes to Kristen's heirs as personal property 4. automatically expiresESSAY. Write your answer in the space provided or on a separate sheet of paper. 1) Ms. Linda Udall owns 800 shares of Fordam Inc. that she acquired several years ago at $10 per share. On April 30, 2020, she acquires an additional 200 shares at $12 per share. On July 15, 2020, after Fordam releases unexpectedly bad second quarter results, Ms. Udall sells all 1,000 of her shares at $5 per share. On August 1, 2020, she purchases 200 shares at $1 per share as she believes the market has overreacted to the bad news. Ms. Udall is still holding the shares at the end of the year. What are the tax consequences of these transactions? 2) On July 1, 2020, Lorty InC. sells equipment for S126,000. This equipment had an original cost of $111,000 and a net book value of $93,000. For tax purposes, these assets were in Class 8. The UCC balance in this class on Januarv 1, 2020 was $103,000. There were no other additions or dispositions of Class 8 assets during the taxation vear ending December 31, 2020.…3. With respect to foreclosure, give the reason you agree or disagree with the statements below: a. A foreclosure sale eliminates the outstanding debt(s) of the individual being foreclosed. b. Proceeds of a foreclosure sale are distributed to those holding a lien on the property on the basis of the percentage of total debt each is owed. c. Foreclosure means the senior mortgage loan lender automatically takes ownership of the property.