Corporate limited liability refers to a legal concept that separates the assets and liabilities of a corporation from those of its owners (shareholders). In essence, it means that the personal assets of shareholders are protected from the debts and liabilities of the corporation.
If the corporation incurs losses or is faced with legal claims, the shareholders are generally not personally responsible for covering these losses beyond the extent of their investment in the company. Their liability is limited to the amount they have invested in the form of shares.
This protection encourages individuals to invest in corporations without fear of losing their personal assets in case the company faces financial difficulties or legal issues.
However, it's important to note that limited liability does not shield shareholders from all liabilities; there are exceptions, such as instances of fraud or illegal activities.
Nevertheless, for most business activities, limited liability is a fundamental principle that encourages entrepreneurship and investment in corporate entities while mitigating personal financial risk for shareholders.
For more such questions on Corporate limited liability
#SPJ6
Answer: the extent of the assets of the corporation. Limited liability means that corporate owners (stockholders) and limited partners are responsible for losses only up to the amount they invest. Their other personal property is not at risk.
Explanation:
Balance, 1/1/2017 290 $5.00 $1450
Purchase, 1/15/2017 140 ..5.10 714
Purchase, 1/28/2017 140 ..5.30 742
An end of the month (1/31/2017) inventory showed that 230 units were on hand. If the company uses LIFO, what is the value of the ending inventory?
Answer:
Ending inventory= $1706
Explanation:
Giving the following information:
Units Per unit price Total
1/1/2017: 290 *$5.00= $1450
1/15/2017: Purchase, 140*$5.10= $714
1/28/2017: Purchase, 140*$5.30= $742
At the end of the month (1/31/2017) inventory showed that 230 units. If the company uses LIFO (last-in, first-out)
Ending inventory= 140*5.30+140*5.10+50*5= $1706
Answer:
$202,500
Explanation:
Working capital is the difference between current assets and current liabilities. Therefore, the formula for calculating working capital is as below.
Working capital = current assets- current liabilities
in this case
current assets =
cash $200,000
account receivable $75,000
prepaid expenses of $12,500,
Total current assets = $287,500
current liabilities
accounts payable of $50,000
other current liabilities of $35,000
Total current liabilities = $85,000
working capital = $287,500 - $85,000
=$202,500
Answer:
1) if the FED decides to strengthen then dollar, it will make US exports more expensive and imports cheaper. That will cause net exports to decrease, i.e. there will be less exports and more imports.
A strengthening of the US dollar helps importing companies because they will buy cheaper goods from abroad and will be able to sell them at higher domestic prices. On the other hand, exporting companies will be hit because hey loss competitiveness since their products will be more expensive.
2) If the FED decides to weaken the US dollar, the opposite will happen. Exporting companies will be favored, while importing companies will be hurt. The country will start to export more and import less.
3) Generally, the FED intervenes market through its money supply policy. When the interest rate increases or the money supply increases, the value of the US dollar will tend to lower. Even if expansionary monetary policy doesn't have an immediate impact, the expectations do matter. If people expect a devaluation of the US dollar, they will start to buy foreign currencies, which in turn will end up devaluating the US dollar. It is a self-fulfilled prophecy.
Another way the FED impacts businesses is through the interest rate. Lower interest rates will increase both domestic and foreign investment in the US.
b. segmentation criteria
c. segmented marketing strategy
Answer:
Option C, Segmented marketing strategy
Explanation:
Segmented marketing strategy is a process of breaking down the targeted audience into smaller groups so that it can be easily managed. The criteria’s used for breaking down the market include – geography, behaviour, demography and Psychographic.
Hence, option C is correct
a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion?
How large a tax cut would be needed to achieve the same increase in aggregate demand?
b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt.
Increase spending
Increase taxes by
Answer:
a.i $6B
ii. The government should decrease taxes by $7.5B to achieve $30B increase in the level of output.
b. Possible combination:
Increase government spending by $30B.
Decrease taxes by $30B.
Explanation:
Fiscal policy is a way by which a government adjusts its spending levels and tax rates to predict and influence a nation's economy. It is synonymous to monetary policy through which a central bank influences a nation's money supply into the economy. Fiscal policy is divided into two types namely:expansionary or contractionary fiscal policies.
a)
. Government spending multiplier is a direct increase in the level of output (GDP) as a result of one dollar change in government spending.
By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion?
Government spending multiplier:
To calculate government spending multiplier (Kg) using MPC:
(1-0.8)*30B
=$6B
The government should increase its spending by $6B in order to archives $30B increase in the level of output.
Tax Multiplier:
Calculate tax multiplier (Kt) by using MPC:
The government should decrease taxes by $7.5B to achieve $30B increase in the level of output.
b) Possible combination:
Increase government spending by $30B.
Decrease taxes by $30B.
Answer:
$22,500
Explanation:
Activity based costing (ABC) is a method of cast allocation where the overheads and other indirect costs are allocated to products and services based on the volume of different activities consumed by each product.
The total cost pool is divided by the defined cost drivers to determine the cost driver rate.
Titanium Hours Aluminium hours Cost
Assembly 500 500 1000 45000
Inspection 350 150 500 75000
Labor hours 2100 1900 4000 120000
Cost per labor hour = 120000/4000= 30
Using activity based costing , portion of the assembly cost assigned to titanium Racquets = Titanium assembly hours / total assembly hours * total assembly cost
500/1000*45000
=22,500