User Account

All Pages

Fewer state and federal regulations

Assignment Help Finance Basics
Reference no: EM131872357

You started your business as a partnership. Now your partners and you have decided to convert the business into a regular corporation. Assume that the firm is profitable (positive EBIT and EBT). Which of the following statements is CORRECT?

A smaller percentage of your firm's income will be subject to federal income taxes.

Your firm will face to fewer state and federal regulations.

You and other shareholders (the ex-partners) of the firm will now be exposed to less liability against personal wealth outside of the investment in the firm.

The equity investors will be exposed to less liability, but they will find it more difficult to transfer their ownership.

You will find it more difficult to raise additional capital for the firm.

Reference no: EM131872357

Questions Cloud

How much interest is paid to bondholders every 6 months : The bonds have a Coupon rate of 2.88% and a Yield to Maturity of 2.84%. The bonds pay interest semi-annually. Answer the following:
Ethical issues involved in engaging in such transactions : What are the ethical issues involved in engaging in such transactions? Were any of the AICPA rules of conduct violated?
Credit extension plan to break even : a) Should BML extend credit to its customers? b) How much should the price change for the credit extension plan to break even?
Individual and corporate tax returns for client : You were engaged to file the 2015 individual and corporate tax returns for client. Do you believe that you violated any of the rules of conduct in AICPA Code.
Fewer state and federal regulations : A smaller percentage of your firm's income will be subject to federal income taxes.
Estimate the revenue expense and gross profit : Estimate the revenue, expense, and gross profit reported from these contracts in the year that the revenue is recognized
Conduct research on the current state of social security : Conduct research on the current state of Social Security. Based on your research, write a three-to-five page paper (not including the title and reference pages)
Federal-plus-state income : Edwards Electronics recently reported $10,125 of sales, $4,950 of operating costs other than depreciation, and $1,125 of depreciation.
Estimated required rate of return on woidtke stock : What is the estimated required rate of return on Woidtke's stock?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd