Discussion Forum Question Paper

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Week #12 Discussion Forum Question-Kazuyo Fujimoto
a) Under the corporation, the owners have limited liability. Therefore, the owners of the corporation are not personally liable for the company’s debts. Sole proprietorship; on the other hand, the business owners are personally responsible for the business debt if the business doesn’t generate enough money to cover expenses.
b) I consider the limited liability is an advantage. I have seen many small business owners closed their businesses and lost their homes under unlimited liabilities.
c) Corporation has some disadvantages such as double taxation, more regulation and difficult to start than forming sole proprietorship and partnership.
a) I will need more …show more content…

Approximate market price per share is $40.
b) My personal opinion is that $120 per share to $40 per share doesn’t make so much difference because both prince points are affordable for common person like myself and it doesn’t give me any excitement.
However, if Berkshire Hathaway ($247,120.00 as of December 14th, 2016) will do 10,000-for-1 split, I think many investors get excited and stock price will be affordable for common investors like myself. Hence, more investor will purchase the stock. As a result, price will go up.
Tim Cook, the CEO of Apple Inc. said, “We’re taking this action to make Apple stock more accessible to a larger number of investors.” I think Apples case and Berkshire case make sense but not for $120 to $40 case for me and I think many investors can relate to my opinion.
4) a) Treasury stock transaction has no effect on net income.
b) Total assets will decrease by $11,00- due to cash payment acquiring treasury stock.
c) Total paid in capital amount has no effect.
d) Total stockholder’s equity will decline by $11,000 as a result of ABC, INC’s purchase of buy back its

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