Ask Question
BusinessBusiness
4 February, 12:31

Choice of ownership determines the degree to which each owner has personal liability for the firm's debts and the sources of funds available to the firm to finance future expansion.

+2
Answers (1)
  1. 4 February, 14:42
    0
    That statement is true.

    Whenever a profit or liability created by the company, it will spread accordingly according to the percentage owned by the shareholders.

    For example, if Andy has 30 % ownership and Amy has 70% ownership and the company generate $1000 of debt, Andy will be liable for $300 of it and amy will be liable for $700 of it
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Choice of ownership determines the degree to which each owner has personal liability for the firm's debts and the sources of funds ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Assume the company is considering a reduction in the selling price by $10 per unit and an increase in advertising budget by $5,000. This will increase sales volume by 50%.
Answers (1)
Holly's Ham, Inc. sells hams during the major holiday seasons. During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs, and $24,000 of fixed cost. How many units must be sold to make $63,000? a.
Answers (1)
During the current year, the Jules Company incurred the following product costs:Direct materials used in production $250,000Direct labor $185,000Manufacturing overhead $245,500The Jules Company's beginning Work in Process Inventory was $20,000 and
Answers (1)
What industries do you regard as being highly competitive? can you identify any barriers to entry in those industries?
Answers (1)
Kingbird Corporation owns a warehouse. On November 1, it rented storage space to a lessee (tenant) for 3 months for a total cash payment of $2,790 received in advance.
Answers (1)
New Questions in Business
Why is it important to inquire about media rights before you decide to use a piece of media? A. When you have rights you are able to embed a hyperlink onto your slides. B.
Answers (2)
Tibbs Inc. had the following data for the most recent year: Net income = $300; Net operating profit after taxes (NOPAT) = $220; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700;
Answers (1)
The money a person receives from a wage or salary or from investments is income, and the assets an individual owns are wealth. Why is wealth considered more significant in social stratification? a.
Answers (1)
When a firm does not have the resource required for pursuing a growth strategy, and if the resource in question is not easily tradable, the implication for the strategist is most likely to:A) enter into a licensing agreement.
Answers (1)
Aziz Company sells two types of products, Basic and Deluxe. The company provides technical support for users of its products, at an expected cost of exist150,000 per year. The company expects to process 10,000 customer service calls per year.
Answers (1)
Home » Business » Choice of ownership determines the degree to which each owner has personal liability for the firm's debts and the sources of funds available to the firm to finance future expansion.
Sign Up Forgot Password?