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advantage of corporations relative to partnerships and sole proprietorships




Question;1) Which of the following is an advantage of;corporations relative to partnerships and sole proprietorships?;Reduced;legal liability for investors.;Lower;taxes.;Most;common form of organization.;Managers;2);The group of users of accounting information charged with achieving the goals;of the business is its;creditors.;auditors.;investors.;managers;28) Seasons Manufacturing manufactures a product;with a unit variable cost of $100 and a unit sales price of $176. Fixed;manufacturing costs were $480,000 when 10,000 units were produced and sold. The;company has a one-time opportunity to sell an additional 1,000 units at $140;each in a foreign market which would not affect its present sales. If the;company has sufficient capacity to produce the additional units, acceptance of;the special order would affect net income as follows;Income;would increase by $40,000.;Income;would decrease by $8,000.;Income;would increase by $8,000.;Income;would increase by $140,000.;29)Carter, Inc. can make 100 units of a necessary;component part with the following costs:?;Direct Materials;$120,000;Direct Labor;20,000;Variable Overhead;60,000;Fixed Overhead;40,000;If Carter;can purchase the component externally for $220,000 and only $10,000 of the fixed;costs can be avoided, what is the correct make-or-buy decision?;Buy;and save $30,000;Buy;and save $10,000;Make;and save $30,000;Make;and save $10,000;30) A company has a process that results in;15,000 pounds of Product A that can be sold for $16 per pound. An alternative;would be to process Product A further at a cost of $200,000 and then sell it;for $28 per pound. Should management sell Product A now or should Product A be;processed further and then sold? What is the effect of the action?;Process;further, the company will be better off by $20,000.;Process;further, the company will be better off by $180,000.;Sell;now, the company will be better off by $200,000.;Sell;now, the company will be better off by $20,000.


Paper#46883 | Written in 18-Jul-2015

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