Chapter 1. Legal forms of business organization A. Sole proprietorship: A business owned by a single person and which has a minimum amount of legal structure. 1. Advantages a. Easily established with few complications b. Minimal organizational costs c. Does not have to share profits or control with others 2. Disadvantages a. Unlimited liability for the owner b. Owner must absorb all losses c. Equity capital limited to the owner’s personal investment d. Business terminates immediately
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Production Possibilities Frontier (a) Panel (a) shows the production opportunities available to the farmer and the rancher. 4 Figure 1 The Production Possibilities Frontier (b‚ c) (b) The farmer’s production possibilities frontier Meat (oz) If there is no trade‚ the farmer chooses this production and consumption. (c) The rancher’s production possibilities frontier Meat (oz) 24 8 12 4 0 If there is no trade‚ the rancher chooses this production and consumption. B A 16 32 Potatoes (oz) 0 24 48
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purchase of an asset for $90‚000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Compute the payback period for this investment. Part of year = Amount paid back in year 4/ Net cash flows in year 4 = $10‚000 / $60‚000 = 0.167 Payback period =3 + 0.167 = 3.1367 years = 3yrs 2 mos. III. Accounting Rate of Return A machine costs $500‚000 and is expected to yield an after-tax net income of $15‚000 each year. Management
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Chapter 1 Review Questions 1. A project is defined‚ according to the Project Management Insitute‚ as a temporary endeavor undertaken to create a unique product‚ service‚ or result. Five characteristics that help differentiate projects from other functions carried out in the daily operations of the organization are as follows: 1. An established objective. 2. A defined life span with a beginning and an end. 3. Usually‚ the involvement of serveral departments and professionals. 4. Typically
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CHAPTER 4 Personality and Values CHAPTER 81 4 Personality and Values LEAR I G OBJECTIVES After studying this chapter‚ students should be able to: 1. 2. 3. 4. 5. I. Define personality‚ describe how it is measured‚ and explain the factors that determine an individual’s personality. Identify the key traits in the Big Five personality model. Demonstrate how the Big Five traits predict behavior at work. Identify other personality traits relevant to OB. Define values‚ demonstrate
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Question 33. The National Collegiate Athletic Association (NCAA) reported that the mean number of hours spent per week on coaching and recruiting by college football assistant coaches during the season was 70. A random sample of 50 assistant coaches showed the sample mean to be 68.6 hours‚ with a standard deviation of 8.2 hours. a. Using the sample data‚ construct a 99% confidence interval for the population mean. z = +/- 2.68 68.6 – 2.68 * 8.2 / √50 = 65.49 68.6 + 2.68 * 8.2
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same as that for February. †The desired ending inventory for the quarter is equal to the desired ending inventory on March 31‚ 2012. **The beginning inventory for the quarter is equal to the December ending inventory. INTERCOASTAL ELECTRONICS 4. Cash disbursements budget: 2012
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the certification on her own time‚ Natasha does not expect to lose any income during the certification. Another option is going back to school for an MBA degree. With an MBA degree‚ Natasha expects to be promoted to a managerial position in her current firm. The managerial position pays $20‚000 a year more than her current
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1.) Why were most Americans content with their role within the British Empire in the 1750s? What evidence of discontent did exist? Most Americans were content with their role in the British Empire because Britain had provided them opportunities for trade and commerce‚ military protection‚ and political stability. Because of neglect by the British the trade restrictions decreased. In the colonies‚ people were allowed to trade unlimitedly with little tax to whomever they chose. Military protection
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CHAPTER 21 PARTNERSHIPS TRUE/FALSE 1. Unlike a subchapter C corporation‚ a partnership is subject to only one level of taxation and can often liquidate in a tax-deferred manner. ANS: T A partnership is a flow-through entity subject to only one level of taxation. Liquidation of the partnership is generally tax-deferred. PTS: 1 REF: p. 21-2 | p. 21-3 2. Section 721 provides that no gain or loss is recognized on contribution of property to a partnership in exchange for an interest in
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