Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's shares on December 31, 20X3, for $1,000 per share in a transaction that Pam treats as an exchange for tax purposes. Comet has total E&P of $250,000 on December 31, 20X3. What are the tax consequences to Comet because of the stock redemption?

Answers

Answer 1

Answer:

Comet's E&P will decrease by $50,000 due to the exchange.

Explanation:

50 of Pam's shares are worth 50 x $1,000 = $50,000, since the corporation is redeeming them, it will do so by decreasing its earnings and profits (retained earnings account).

Generally when larger corporations buy back stocks (AKA treasury stocks), they will credit cash and debit treasury stocks, but since Pam's stocks are being retired, they are not going to be held as treasury stocks, therefore E&P must decrease.


Related Questions

Primare Corporation has provided the following data concerning last month’s manufacturing operations. Purchases of raw materials $ 32,000 Indirect materials included in manufacturing overhead $ 4,680 Direct labor $ 59,300 Manufacturing overhead applied to work in process $ 87,100 Underapplied overhead $ 4,100 Inventories Beginning Ending Raw materials $ 11,200 $ 20,000 Work in process $ 56,000 $ 68,500 Finished goods $ 34,900 $ 43,700 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.

Answers

Answer and Explanation:

1. The Preparation of schedule of cost of goods manufactured for the month is prepared below:-

Primare Corporation

Schedule of Cost of Goods manufactured

Particulars                                                             Amount

Direct Materials:

Beginning Raw Material                      $11,200

Add: Raw Material purchases

during the month                                 $32,000

Total Raw Material available              $43,200

Less: Ending Raw material                   $20,000

Raw Material used in production         $23,200

Less: Indirect Material included in

manufacturing Overhead                       $4,680  $18,520

Add: Direct labor                                                   $59,300

Add: Manufacturing overhead

applied to work in process                                    $87,100

Total Manufacturing Costs                                   $164,920

Add: Beginning Work In Process                           $56,000

Less:  Ending Work in Process                               $68,500

Cost of Goods manufactured                                $152,420

2. The Preparation of schedule of cost of goods sold for the month is prepared below:-

Primare Corporation

Schedule of Cost of Goods Sold

Particulars                                                             Amount

Beginning finished Goods Inventory                    $34,900

Add: Cost of Goods Manufactured                       $152,420

Goods available for sale                                        $187,320

Less: Finished Goods Inventory, Ending               $43,700

Unadjusted cost of goods sold                             $143,620

Add: Under-applied Overhead                               $4,100

Cost of Goods Sold adjusted                                 $147,720

(Under-applied overhead refers that there was less overhead applied that is Actual overheads are more than the overhead applied, thus adding to the cost of the goods sold)

Both the Army and Marine Corps have a capability need to procure additional helicopters beyond the number specified in the current contract; the helicopter program is currently in production. What cost estimating technique would the services most likely use as a basis for requesting the funding to pay for the additional aircraft?

Answers

Answer:

Actual Cost

Explanation:

Based on the information provided it can be said that the estimating technique needed would be the actual cost technique. This refers to calculating the actual expenditure made for acquiring a specific asset. This includes all of the expenses that the supplier has invoiced as well as the costs incurred to set up, test and deliver the asset in question. Therefore in a situation such as this one the actual cost technique will be used as a basis for the amount of funding to pay.

after you analyzed demand, you took steps to make sure your business made sense financially. How will thinking on the margin help increase the chance of long-term success for your business, even if additional competition enters your community.

Answers

Answer:

Thinking on the margin will ensure that each pair of inserts produced is turning a profit. Once a profit is no longer being made on a pair of inserts, production must be cut back. Understanding these margins will also help me stay competitive in a market that is open to other producers. If additional producers enter the market, I know that I have the ability to lower prices or offer discounts while still maximizing profits.

Explanation:

The thinking of the margin that increase the chances of the long term success should be explained below.

Long term success:

If we think on the margin so we assure that each & every pair of inserts generated should be converted in a profit. Once a profit is no longer being made on a pair of inserts, so here the production should be cut back. Understanding these margins will also help for  stay competitive in a market.

Learn more about success here:https://brainly.com/question/24353007

General Mills began losing market share for​ Go-gurt when its biggest competitor began to focus on​ kids' yogurt. Which step of the market research process does this statement best correlate​ with?

a. Analayzing data

b. Data collection

c. Choosing the data collection method

d. Analyze and interpret the data

Answers

Answer:

b. Data collection

Explanation:

General Mills is only at the first stages of the market research process, which include: diagnosis of the problem, definition of the problem, and data collection.

General Mills has found that it's lost market share to its biggest competitor because the competitor decided to focus on a particular type of yogurt. This is Data collection.

1. Do you believe E-sports will continue to grow in the future? Why or why not?

Answers

Answer: I don’t really know but I think it will still be popular and lots of people will still play no matter what

Answer:

In terms of video games, yes. Because, everyone can play videogames, but not everyone can compete in physical sports.

Explanation:

I don't need to give an explanation since it's my opinion. So don't report this answer please...

Analyse the implications to Mr Flake’s business if: In May and June Mr Flake fell ill and he had to pay somebody else £1200 a month to run the business as well as himself? Answer: He received 6 more party bookings for September?

Answers

Answer:

1. Paying somebody else and himself represent cash outflow.

2. Party bookings represents forecasted cash inflow.

Explanation:

Remember, a cash flow shows where money is coming from into the accounts of a business and where money goes to from the accounts of the business. Inflows represent credit transactions into the business account, while the outflows represents debit transactions to external sources.

Thus, paying somebody else £1200 a month to run the business as well as himself (Mr Flake) both represents outflow of cash from his ice-cream business. But the 6 more party bookings for September represents cash inflows since he will be receiving a pay from the clients.

homes for sale by owner always save the buyers money on a commission.
a) true
b) false

Answers

Answer:

b) false

Explanation:

This statement is false. When a home-owner decides to sell their property by themselves without the help of a realtor it is called an Open Listing. This saves the seller money by not having to pay a commission to anyone but usually since the price of the home stays the same the buyer is not saving any money. There are few cases in which not having to pay a commission allows the seller to lower the price of the house a little bit and attract more buyers but this is usually not the case.

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised break-even point in dollars would be: $300,000. $400,000. $325,000. $500,000. $375,000.

Answers

Answer: $375,000

Explanation:

Given the following :

Selling price = $100

New variable cost per unit =$(70 - 10) = $60

New fixed cost = $150,000

Break-even point in dollars:

Fixed costs/Contribution margin ratio

contribution Margin Ratio

[(selling price per unit - total variable cost per unit) /selling price per unit]

= [($100 - $60) / $100]

$40 / $100 = 0.4 = 40%

Break-even point in dollars:

$150,000 / 0.4 = $375,000

Here is some basic data for Delta​ Manufacturing: Cost of materials purchases on account ​$ 77,000 Cost of materials requisitioned​ (includes $2,000 of​ indirect) ​45,000 Direct labor costs incurred ​80,000 Manufacturing overhead costs​ incurred, including indirect materials ​98,000 Cost of goods completed ​276,600 Cost of goods sold ​149,000 Beginning raw materials inventory ​ 19,000 Beginning work in process inventory ​35,000 Beginning finished goods inventory ​25,000 Predetermined manufacturing overhead rate​ (as % of direct labor​ cost) ​120% The journal entry to record actual manufacturing overhead costs includes a

Answers

Answer:

Overheads $498,000 (debit)

Cash $498,000 (credit)

Explanation:

First calculate the Amount of Actual overhead incurred (overheads are indirect manufacturing costs)

Manufacturing overheads incurred = $498,000

Journal Entry

Overheads $498,000 (debit)

Cash $498,000 (credit)

This journal is different from that of recording applied overheads which is shown as follows :

Work - In - Process $ 96,000 (debit)

Overheads $ 96,000 (credit)

Overheads amount = ​80,000 × 120% = $ 96,000

4x+2/2 -(-2x)
Like ansa it now​

Answers

Answer:

6x + 1

Explanation:

Given

4x+2/2 -(-2x)

Required

Solve

To start with, rule of BODMAS must be applied; meaning that we start by simplifying the bracket.

4x+2/2 -(-2x) becomes.

4x + 2/2 + 2x

The next step is to simplify all divisions.

4x + 2/2 + 2x becomes

4x + 1 + 2x

Collect like terms

4x + 2x + 1

6x + 1

Hence,

4x+2/2 -(-2x) is equivalent to 6x + 1

Is travelling carefully to invest money, time and energy in important situations and activities called planning?​

Answers

Answer:

Planning is done by completing the task.

Explanation:

Planning is done by completing tasks with a pre-defined and planned manner with improvement. It is a continuous process that can be completed with all types of tasks. Saving time, money, and human energy during travel is also under planning, through which a person makes his journey easy, safe, and at a low cost.

However, a capacity utilization rate that is nearing 100% is ............... because .......

Answers

Answer:

A capacity utilization rate that is nearing 100% is ideal because it means that company's actual output is almost the same as its maximum possible output.

Explanation:

Capital utilization rate is used to calculate the rate at which levels of output are met. It is defined by the given formula:

Capacity utilization = (Actual level of output / Maximum level of output) · 100

If the Capacity utilization rate is near 100%, it means that actual level of output is almost same as the maximum level of output, which is considered as the Ideal rate.

Ideal rate is usually not possible because there are a lot of hurdles in the processes. A rate of 85% is considered the optimal rate for most companies.

How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%?a. $438.03b. $461.08c. $485.35d. $510.89e. $537.78

Answers

Answer:

The present value is $537.78

Explanation:

Given

[tex]Future\ Value\ (FV) = \$20,000\\Time (T) = 50\ Years\\Discount\ Rate\ (R)= 7.5\%[/tex]

Required

The Present Value(I)

To calculate the present value, we simply apply the formula for future value;

[tex]FV = I *(1 + R)^T[/tex]

Substitute 20,000 for FV; 50 for T and 7.5% for R;

This gives

[tex]20,000 = I *(1 + 7.5\%)^{50}[/tex]

Convert percent to decimal

[tex]20,000 = I *(1 + 0.075)^{50}[/tex]

[tex]20,000 = I *(1.075)^{50}[/tex]

[tex]20,000 = I *37.19[/tex]

Divide both sides by 37.19

[tex]\frac{20,000}{37.19} = \frac{I *37.19}{37.19}[/tex]

[tex]\frac{20,000}{37.19} = I[/tex]

[tex]537.778 = I[/tex]

[tex]I = 547.78\ (Approximated)[/tex]

Hence, the present value is $537.78

"Creditors do not actually have to worry about their dues in case the business fails." In which form of business is this possible? Which special feature is highlighted in this statement ?

Answers

Answer:

sole proprietorship.

Explanation:

An exclusive property can be defined as a business structure that is managed and owned by a single person, so there is no legal distinction between the owner and his company. This is a type of simple business structure, and is generally used by people who are starting some kind of enterprise.

Therefore, this is the most appropriate business form for the statement of the issue, since in this structure there is only a single owner in the company, which guarantees its sole responsibility for all profits, debts and losses inherent to the business.

Define Red Gross Society.​

Answers

Answer: The Indian Red Cross Society is a voluntary humanitarian organization to protect human life and health based in India.

Explanation: It is part of the International Red Cross and Red Crescent Movement, and so shares the Fundamental Principles of the International Red Cross and Red Crescent Movement.

The adjusted trial balance for Yondel Company at December 31, 2018 is presented below: Accounts Debit Credit Cash $ 8,000 Prepaid rent 23,000 Land 445,000 Accounts payable $ 12,000 Salaries payable 20,000 Common stock 230,000 Retained earnings 109,000 Dividends 14,000 Service revenue 340,000 Salaries expense 160,000 Rent expense 29,000 Utilities expense 32,000 Totals $ 711,000 $ 711,000 Prepare the closing entries for Yondel Company for the year ended December 31, 2018.

Answers

Answer:

Explanation:

Cash                        =8000

Prepaid rent           = 23,000

Land                       = 445000

Accounts payable                              = 12,000

Salaries payable                                  = 20,000

Retained earnings                              = 109,000

Dividends                    = 14,000

Service revenue                                   = 340,000

Salaries expenses      = 160,0000

Rent expenses             = 29,000

Utilities expenses         = 32,000

Net income = Service revenue - Salaries-Rent-Utilities-

=340,000-160,000-29,000-32,000 = 119,000

                                       

                                                       Journal

1.     Debit  Service revenue   - 340,000

      Credit income summary -                  340,000

2,    Debit Income summary -    221,000

      Credit Salaries expenses                              160,000

      Credit Rent expenses                                     29,000

      Credit Utilities expenses                                 32,000

3     Debit Income summary          119,000

      Credit retained earnings                                  119,000

4     Debit retained earnings          14,000

      Credit retained earnings                                   14,000

Choose one of the laws that protect consumers' financial rights and find three articles describing instances of financial institutions breaking this law. Write a report (about 500 words) describing the circumstances of the violation and the penalties associated with the violation.

Answers

Answer:

Consumer protections sound like it should be a guarantee in Usa, but the government never intervened to protect citizens in the 1960s.

It began mostly with 1968 Consumer Credit Protection Act, when Congress stepped on from violence to defend consumers and their financial histories.

Many regulations expanded investor protections in the years that followed, detailing how the government can obtain records from bank clients, how banks manage lenders and how lenders manage deposit accounts.

During the Great Depression of 2008, it all reached a climax and with that, the financial stability oversight Bureau was created, a new federal department committed to defending customers.

Answer:

For this report I chose to use the Truth in Lending Act. The Truth in Lending Act protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans. This protects you from loan overdraft and over billing. This allows the consumer ease to their day of anytime they run into finacial issues. As this makes better sense to consumers it helps others all over the world. People use it in hopes that this will help them in everyday.

Explanation:

JohnBoy Industries has a cash balance of $54,000, accounts payable of $134,000, inventory of $184,000, accounts receivable of $219,000, notes payable of $129,000, and accrued wages and taxes of $41,500. How much net working capital does the firm need to fund?

Answers

Answer:Net working capital = $152,500

Explanation:

Net working capital = CA– CL

Where CA= Current Assets = Cash + Inventory + Accounts Receivable

and CL= Current Liabilities= Account payable + Notes payable + accrued wages and taxes

CA=$54, 000 + $184,000 + $ 219,000 =$457,000

Current liabilities = Account payable + Notes payable + accrued wages and taxes

CL = $134,000 + $129,000 + $41,500 = $304,500

Net working capital = Current assets – Current liabilities

Net working capital = $457,000 – $304,500=  $152,500

Net working capital = $152,500

Define Red Gross Society.​

Answers

Answer:

did you mean red cross?

Explanation:

It is an international humanitarian organization established by Geneva Organization to provide medical care.

How many owners can own a partnership

Answers

Answer:

2 owners can own a partnership

Answer:

Minimum-2.

Maximum-100

A checking account has cash that you can use at your disposal. So, when the pharmacist asked “Cash or Credit?”, why did you say “debit” instead of either of the other two options?

Answers

Answer:

Credit:

Credit is usually less used than the cash and debit. The reason is that credits can help you build high balances, as it help you spend money which you currently don't have, which you may or may not be able to pay by the end of the month. If you are not able to pay by the end of the month, interest charges will be applied, and your financial hardships will easily grow.

If you have a checking account with enough cash, you simplify don't need to go for credit to avoid such a situation.

Cash:

The use of cash is reducing day by day. The main reason is that you have to decide before leaving the house how much cash you should carry. If your wallet gets lost, money is gone. If you are at a shop and your money falls short, then you'll have to go to an ATM to withdraw some more. This may seem a lot of hassle for some, and to avoid that people prefer to go for Debit.

Debit

Debit is considered the most friendliest way of transaction.

You don't have to worry all about the interest rates and the bills you get at the end of the month by using Credit, because you are using your own money from your current account to pay for purchases.

You also don't have to worry about carrying cash with you all the time. If your debit card gets misplaced,  just report it and block it. You won't suffer any financial damage

Businesses in the nation of Islandia have been accumulating cash because they have a pessimistic outlook of the national economy. Recent changes in the economic outlook of Islandia have caused business leaders to begin to invest some of their accumulated cash. Suppose that businesses in the country invest a total of $20 billion of this cash. (a) What would be the maximum expected change in GDP if Islandia's marginal propensity toconsume (MPC) is 0.75? (b) Suppose that the recent economic outlook in the country of Mountainia has been the opposite.Businesses have postponed planned investments and have begun to accumulate cash. Ifbusinesses in Mountainia postpone $10 billion of their planned investments, what would be themaximum expected change in GDP if its marginal propensity to save (MPS) is 0.25?

Answers

Answer:

Please see answer and explanation below.

Explanation:

A. Since MPC is 0.75, therefore MPS would be 0.25 (i.e 1-MPC, 1-0.75)

The multiplier will now be(1/MPS) 1/0.25=4

It therefore follows that if investment increases $20billion, aggregate demand will also increase by $80billion(i.e 20 × 4). This means $60billion in consumption and $20billion in investment.

B. Since MPS is 0.25, Multiplier would therefore be 1/0.25(1/MPS) = 4

It therefore follows that if $10billion planned investments is postponed, the aggregate demand would decrease by $40billion( i.e 10 × 4 )

Meaning that there would be $30billion in consumption and $10billion in investment.

A man in San Rafael County was discovered committing workers' compensation fraud. He had been observed working while at the same time receiving disability benefits. Surveillance showed the man working at an automobile auction. The investigator interviewed the owner of the auction and found that the claimant was being paid $200 per week in cash for washing vehicles and performing other shop tasks. Surveillance video showed the man carrying 25-pound bags of pet food, loading boxes, and rummaging through a trash dumpster. Obviously, he was not hurt very badly. 1. Was surveillance the proper method to use in this case? Why? 2. What are some restrictions to be careful about in conducting surveillance?

Answers

Answer:

1. Yes

2. - privacy concerns

- may lack full details.

Explanation:

1. In this scenario the automobile auction house would need to show video evidence of his (San Rafael's) fraud activities to the investigator.

2. Privacy concerns such as how the information gotten from video surveillance is used may pose a challenge.

There's also the reality of a lack of full details. For instance, San Rafael may be deaf a disability that cannot be reflected well on a surveillance video that shows him working.


A video game system is on sale for 25% off its original price. If the original price is $200, how much money will be saved?​

Answers

Answer:

$50

Explanation:

25% = 1/4

200 / 4 = 50

50*3=150, which is 25% off.

How can the government efficiently encourage an optimal level of research and
development?
O All of these answers
Provide grants to academic and private researchers
O Fund research directly
O Enforce an effective patent system

Answers

Answer:

Enforce an effective patent system

Explanation:

Patent is defined as the government authority that bestows the full right and title of ownership to an investor in order to keep others away from making and selling such invention for a defined period of time.

The enforcement of effective patent system serves as incentives for optimal level of research and development as researchers feel recognized for their efforts and will be willing to do more as they know that inventions are now protected from duplication by others . Moreover , returns in investment are now guaranteed.

In two to three sentences, answer the following:
What information you can obtain from a stock quote?

Answers

Answer:

The information that we can get from stock quote is about bidding price, details of previous bidding, etc.

Explanation:

A stock quote can be defined as the last price of stock of exchange. It is the price on which the traders and the buyers consented in their last trade or exchange.

The details that a stock quote provides is the price of last bid, volume of trade, bid price, volume of trade. The buyers and traders can access this information either on their phones, newspapers, news media, online portals etc. The stock quote is shown in decimals.

Choose two consumer protection laws and, in about 500 words, describe the benefits they provide for consumers and the costs to society.

Answers

Answer:

1. Federal Food, Drug, and Cosmetic Act :-

The act governs level of quality for those food, drugs , medical instruments, as well as beauty products produced and procured by customers in the market  of America. Government control as well as regulation of these guidelines was also supplied for under the law.

2. Truth in Lending Act (TILA) :-

The Truth in Lending Act (TILA) relates to the federal law that allows borrowers to make some statements regarding consumer credit conditions and prices. TILA includes rules regulating accessible-end credit lines, closed-end personal loans, retail lending as well as private lending to college.

Answer:

See Explanation Below

Explanation:

Gramm-Leach-Bliley Act (GLBA): This Act of 1999 removed the barriers to consolidation among banking and other financial institutions and allowed the consolidation of a commercial bank, securities firm, investment bank, and insurance company. This Act is also known as the “Financial Services Modernization Act.” This Act allows consumers to use various financial services at a single financial institution. More importantly, the Gramm-Leach-Bliley Act provided limitations on the private information gained from consumers through the transactions performed through banks and other institutions. Private information cannot be sold to other entities without the permission of the consumer. In addition, the Gramm-Leach-Bliley Act makes the practice of obtaining information using false pretenses illegal. Because of the mergers of different types of financial institutions with the relaxation of barriers of consolidation, one entity could possibly have access to an individual’s financial, medical, and criminal history information through the merger of an insurance company and a brokerage company. Therefore, privacy legislation was needed to protect consumers with the Financial Services Modernization Act.

Fair Debt Collection Practices Act (FDCPA): This act prohibits debt collectors from making use of unfair means to recover overdue bills. Unfair means may include calling consumers at any time other than between 8:00 a.m. and 9:00 p.m. local time. It also prohibits using offensive language during the conversation over debt and demanding unjustified amounts not allowed legally. The FDCPA make consumers’ voices powerful by giving consumers more rights regarding how debts are collected from them. These rights include allowing consumers to sue debt collectors individually and to ban contact with consumers at work. Consumers can also seek proof that they actually do owe the money that the debt collector refers to. When first contacting a consumer, the debt collector must inform a debtor of his or her right to dispute the debt. The debt collector must also tell the debtor the amount of the debt, the name of the creditor, and the fact that the debt can be disputed within 30 days. Debt collectors can’t misrepresent themselves by claiming to be an attorney or an employee of a credit reporting agency.

The costs to society include the economic costs. Staffers, lawyers, and enforcement agencies are hired for the administration of these laws. Compliance with regulations requires that companies hire, train, and continually re-educate employees on how to comply with applicable laws. In addition, one provision of the FDCPA requires that consumers can recover reasonable attorney fees. Society needs to contribute for the payment of these services through taxes and also through the higher-priced products and services companies must assess in order to remain profitable

Choose a bank in your community and ask for the forms that you need to fill out in order to open a checking account and a savings account. You may be able to get the forms from the bank branch or to download them from the bank’s website. Fill out both forms.
Then, for each account type, describe the following requirements:
- the information the bank wants
- the documentation required to support the information you provided
- the agreement you’re entering into with the bank by signing the form
(for finance class)

Answers

Answer:

This applies for the Bank of America

- the information the bank wants

For opening a savings or a checking account, the Bank of American only needs some basic personal information, and at least $25 from you, in order to start the account.

- the documentation required to support the information you provided

You need to provide the Bank with these documents:

A primary ID (for example, a driver's license, or a state's issued ID with photo)

A secondary ID (For example, a college ID)

Current mailing address

Social Security Number

Email address

Account number (in case you already have an account)

- the agreement you’re entering into with the bank by signing the form

The agreement is too long to transcribe in this answer, but it essentially compromises you to accept the terms or service of Bank of America. It also gives you information about how the Bank of America will manage your account, and how it will protect its security.

Answer:

Bank of America

- the data the bank needs

For opening an investment funds or a financial records, the Bank of American just necessities some fundamental individual data, and at any rate $25 from you, to begin the record.

- the documentation needed to help the data you gave

You need to furnish the Bank with these reports:

An primary ID (for instance, a driver's permit, or a state's given ID with photo)

A secondary ID (For instance, a school ID)

Current postage information

Social Security Number

Email address

Account number (on the off chance that you as of now have a record)

- the understanding you're going into with the bank by marking the structure

The arrangement is too long to even think about interpreting in this answer, however it basically bargains you to acknowledge the terms or administration of Bank of America. It likewise gives you data about how the Bank of America will deal with your record, and how it will ensure its security.

Explanation:

“Creditors do not actually have to worry about their dues in case the business fails.” In which
form of business is this possible? Which special feature is highlighted in this statement ?

Answers

Answer:

Sole proprietorship

The sole proprietor(not creditors but creditor) bears all losses

Explanation:

Sole proprietorship is a form of business in which there is no legal difference between the owner and the business entity as both are one and the same. The term 'sole' connotes 'only' while 'proprietorship' connotes 'owner(ship)'; it is also referred to as individual entrepreneurship. This is because only the owner of the business (the proprietor) bears all the risks (losses, debts, legal actions etc) and benefits (profits, dividends etc) of the business venture. He owns all the assets of the business venture, debts as well as the legal actions (whether positive or negative); when business is faring well, he enjoys a handsome profit and when business is struggling, he also bears the brunt of it.

The special feature highlighted in the statement above is the reality that the "creditors" refers simply and only to the proprietor (the owner of the business); in which case, if the business fails, the proprietor does not have to bother about the backlash from creditors' pressures, legal actions etc. He is the sole bearer of the losses of the business venture.

i will give brainliest if correct

Which two sentences describe the characteristics of a corporation?
The company is treated as a separate tax entity by law.
The owners have to accept partial liability for debts.
It is possible to raise large amounts of capital by selling company stock.
The owners are known as corporators.

Answers

Answer:

I believe that it is A and C

Explanation:

Answer:

I believe that it is A and C

Explanation: on plato

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