Which of the following will force a sole proprietorship to be legally dissolved? * A) Sales exceed $1 million. B) The partners reorganize the firm's structure. C) Earnings are less than $500,000. D) The owner donates profits. E) The owner dies.

Which of the following will force a sole proprietorship to be legally dissolved? * A) Sales exceed $1 million. B) The partners reorganize the firm's structure. C) Earnings are less than $500,000. D) The owner donates profits. E) The owner dies.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 55P

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

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Which of the following will force a sole
proprietorship to be legally dissolved? *
A) Sales exceed $1 million.
B) The partners reorganize the firm's structure.
C) Earnings are less than $500,000.
D) The owner donates profits.
E) The owner dies.
Generally, an industry is more attractive when
companies in the industry have
switching costs to go from one supplier to another.
A) high
B) moderate
C) significant
D) low

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