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 similitude with the bodily form? 1 ) The pay be shargond totally by sole owner or in in the midst of the partners , part in bodily 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 with(predicate) 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 fit for unemployment policy while a corporation is needful to pay unemployment insurance taxes on his or her salary Disadvantages : 1) A corporation has many avenues to dress dow n capital. It can allot shares of stock and create new types of stock, such as favored 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 surgical procedure of the business. A sole proprietorship or partnership, on the other(a) hand, cannot be sold whole. Instead, each of its assets, licenses and permits essential be by the piece transferred. 3) Due to large business transactions, Corporations are able to pack discounts on material, transportation and other costs thus creating financial economics of scale which sole owners and partners are not able to create. 4) Earnings from a sole proprietorship are hark back 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 feed Example 1.1, Page 9 1.Sussman Industries purchased a bore political mach! ine for $50,000 and paid cash....If you want to get a upright essay, prescribe it on our website: OrderCustomPaper.com

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