Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Finance


Home >> Basic Finance

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.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92700707
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Basic Finance

Jim manages a small factory that produces circuit boards

Jim manages a small factory that produces circuit boards. Jim operates from the belief that a good product creates demand. He focuses much of his energy on developing operational efficiencies and increasing output. The c ...

What is the difference between risk and uncertainty and

What is the difference between risk and uncertainty and what are the methods of risk management?

Common stock versus warrant investment tom baldwin can

Common stock versus warrant investment Tom Baldwin can invest $6,300 in the common stock or the warrants of Lexington Life Insurance. The common stock is currently selling for $30 per share. Its warrants, which provide f ...

A firm is considering a project that has the following

A firm is considering a project that has the following estimated cashflows: Increased sales to business of $100,000 for the next six years (starting in one year's time) Increased costs of $30,000 for the next six years ( ...

Discuss two types of costs amp two types of

Discuss two types of costs & two types of benefits(excluding tax shield and EPS) that would potentially arise from the leveraged recapitalization (a firm proposed a leveraged recapitalization which could create immediate ...

What is the future value of a 9 5 year annuity due that

What is the future value of a 9%, 5 year annuity due that pays 300 each year?

Common stock versus warrant investment tom baldwin can

Common stock versus warrant investment Tom Baldwin can invest $6,300 in the common stock or the warrants of Lexington Life Insurance. The common stock is currently selling for $30 per share. Its warrants, which provide f ...

An insurance company is selling a perpetuity contract that

An insurance company is selling a perpetuity contract that pays $2,00 monthly. The contract currently sells for $100,000. (a) What is the monthly return on this investment vehicle? (b) if instead the amount of monthly in ...

Gardial amp son has an roa of 12 a 5 profit margin and a

Gardial & Son has an ROA of 12%, a 5% profit margin, and a return on equity equal to 20%. What is the company's total assets turnover? What is the firm's equity multiplier?

Starting with her next salary payment next month kathy

Starting with her next salary payment (next month), Kathy intends to save $200 each month. If the interest rate is 1% per month, how much will Kathy have saved after 12 months (12 deposits altogether over 12 months)? Fil ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved