hurdles rate of each division by calculating the cost of capital by using the Weighted Average Cost of Capital (WACC). To calculate this value, Marriott has to evaluate the market of debt and equity, pretax cost of debt, after-tax cost of equity, value of the firm and the corporate tax rate. Moreover, evaluating the correlation and effects of Marriott 's 4 financial strategies in line with its objective of remaining a premier growth company will illustrate the significance of these strategies. Data
| | | | | | a. | True | | | | | | | | | b. | False | | | | | | | | | | | | | | | | | | | (1.2) Proprietorship F M | Answer: a | MEDIUM | . | The facts that a proprietorship, as a business, pays no corporate income tax, and that it is easily and inexpensively formed, are two key advantages to that form of business. | | | | | | | | | | | | a. | True | | | | | | | | | b. | False | | | | | | | | Multiple Choice:
incorporate their businesses is the limited liability that corporate status affords. Apparently, in the current dynamic and fast moving environment, the greatest fear of a partner or sole proprietor is the fact that their life’s savings can be jeopardized by sudden overwhelming debts or a law suit against their business (Griffin, 2011). As such, the protection that a C corporation offers to its shareholders and investors through limited liability or corporate veil comes across as one of its most treasured advantage
Business Structures Krista Harvell FINANCE 571 July 01, 2013 Mario Ducret Business Structures There are four main forms of business structures. The structures of business differentiate based on liability, tax implications, and what type of business is being evaluated when determining what structure to use. This paper will cover the advantages and disadvantages within the four types of business structures; Limited Liability Corporations, Corporations, Partnerships, and Sole Proprietorships
which is recognized under state/corporate laws. A corporation is treated like a “person” and has the same rights as you or I except it is not protected by Fifth Amendment rights. • LIABILITY – Stockholders personal assets are not subject to claims of creditors. The corporation itself is responsible for its actions and liabilities. • INCOME TAXES – Shareholders in a corporation are subject to “double taxation” as in first the corporation is subject to corporate taxation, then money is paid out
(LLC) allows them the maximum protection for their personal assets without the formalities of corporate bylaws, directors and shareholders. Limited liability company is a separate entity that separates the owner of the business. LLCs are no longer new and untested legal entity, they recognized in all fifty states and have established case law and statutes. Jeb and Josh can be employed by their LLC. The tax deductions available to the LLC are plentiful: medical expenses, pension plan, business trips
sectors of the Greek economy, representing almost 8% of GDP. Greek ship owners control over 16% of the world carrying capacity and are involved internationally in the cargo and passenger trades. In July 2015, a tax increase to be paid on luxury yacht charters in Greece had been announced, tax had been risen from 13% to 23% as part of a new austerity measure. There are 35,000 British citizens living in Greece alongside over 20 million tourists visiting each year, 2 million of this figure being from
get low interest loans from the government on our equipment. We will have to resister the company name and also get a state and local tax ID number for tax purposes. A sole proprietorship is the simplest
There are so many advantages of being a sole proprietorship for PODS. They are managed by their owners and can make decisions quickly. They do not have to discuss publicly their operating plans, minimizing the possibility of competitors obtaining their trade secrets ("Advantages and Disadvantages of Sole Proprietorships",2007). All profits will belong to the owner. Essentially this benefits the companies financial standing. Sole Proprietorships have the freedom from the government regulations. Their
CHAPTER FOUR SOLE PROPRIETORSHIP I. INTRODUCTION The sole proprietorship is the simplest form of “business association” we will examine. It is perhaps a bit odd to describe it as a form of “association” given that the “sole” proprietor will be the only “equity” investor and thus doesn’t “associate” with anyone else as a co-equity investor. However, there will almost invariably be “associations” that the sole proprietor will have in order to carry on the business. These can include associations