Josh and Joe are opening a copy store. There are no competing copy stores in the area. They must decide how to organize the business. They anticipate profits of $550,000 the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow. They feel the corporate form of operation will be best for the long term. They seek your advice
By selecting the corporate form of business now, Josh and Joe will
(A) avoid the double taxation that affects partnerships and proprietorships.
(B) be able to transfer ownership without affecting the continuity of the company.
(C) benefit from the ability to exercise mutual agency within a corporation.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Josh and Joe are opening a copy store. There are no competing copy stores in the area. They must decide how to organize the business. They ...” 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
Net income of Mansfield Company was $47,000. The accounting records reveal depreciation expense of $82,000 as well as increases in prepaid rent, salaries payable, and income taxes payable of $62,000, $25,000, and $22,000, respectively.
Answers (1)
A portfolio management organization analyzes 64 stocks and constructs a mean-variance efficient portfolio using only these 64 securities. a. How many estimates of expected returns, variances, and covariances are needed to optimize this portfolio? b.
Answers (1)
The majority of hourly workers at formatting unlimited are neither satisfied nor dissatisfied. what would herzberg recommend if your goal were to increase their level of satisfaction?
Answers (1)
Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to be $320,000 for 2012. The actual manufacturing labor costs were $80,000 for job 1, $120,000 for job 2 and $160,000 for job 3 during 2012.
Answers (1)
What conditions must exist for separate contracts to be viable?
Answers (1)
New Questions in Business
Acme Foods wants to make its chips saltier, but it doesn't want to spend more than it has to on salt. A sample of consumers are asked to compare its current chip (saltiness = 100) with saltier versions and to say whether the new version is saltier.
Answers (1)
Which of the following comparisons best isolates the impact of a change in activity on performance?
Answers (1)
If an investor anticipates an annual rental income from a leased property to be $400,000 dollars, this expected sum has a direct bearing on what the investor will pay for the property. This is an example of
Answers (1)
In comparison to industry averages, Okra Corp. has a low inventory turnover, a high current ratio, and an average quick ratio. Which of the following would be the most reasonable inference about Okra Corp.? A. Its current liabilities are too low. B.
Answers (2)
The individual with the highest valuation of the good will win in which of the following auctions? A. Sealed Bid Auction B. English Auction C. Dutch Auction D. All of the above.
Answers (1)