Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
bartleby

Videos

Textbook Question
Chapter 2, Problem 2.1.2C

Business emphasis
Assume that you are considering developing a nationwide chain of women’s clothing stores. You have contacted a Seattle-based firm that specializes in financing new business ventures and enterprises. Such firms, called venture capital firms, finance new businesses in exchange for a percentage of the ownership.

For each emphasis you listed in (1), provide an example of a real-world business using the same emphasis.

Blurred answer
Students have asked these similar questions
Scenario: Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice.Requirements:1. State three (3) of the main advantage they gain by selecting a corporate form of business now.2. Would you recommend they initially issue preferred or common stock? Why?3. If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation? Please give the reason for your answer. 4. Assume one year later…
Scenario: Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements: 1. Assume one year later (2019) the company KY Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information which is grouped according to your fist name initial. (Hint!!!! Example fist…
Scenario:  Steve Osbourne is considering opening a business, but the major decision faced is how to organize the business. Steve anticipates generating a massive profit during the first year and that the following years should be relatively profitable. Although he has enough to start the business now as a partnership, he believes cash flow may be an issue as the company grows. Steve believes that the corporate form of operation will be his best option and have hired you as a consultant and seek your advice.  Requirements: Answer the following questions for Steve. Explain the corporate characteristic termed “no mutual agency” Explain the corporate characteristic termed limited liability. Explain the term outstanding stock.

Chapter 2 Solutions

Survey of Accounting (Accounting I)

Ch. 2 - Capstone Consulting Services acquired land 5 years...Ch. 2 - Prob. 7CDQCh. 2 - Assume that Esquire Consulting erroneously...Ch. 2 - Prob. 9CDQCh. 2 - Assume that as of January 1, 20Y8, Sylvester Con-...Ch. 2 - Using the January 1 and December 31, 20Y8, data...Ch. 2 - Accounting equation Determine the missing amount...Ch. 2 - Accounting equation The Walt Disney Company (DIS)...Ch. 2 - Accounting equation Campbell Soup Co. (CPB) had...Ch. 2 - Accounting equation The following are recent year...Ch. 2 - Prob. 2.5ECh. 2 - Effects of transactions on stockholders’ equity...Ch. 2 - Effects of transactions on Accounting equation...Ch. 2 - Effects of transactions on Accounting equation A...Ch. 2 - Effects of transactions on stockholders’ equity...Ch. 2 - Effects of transactions on Accounting equation On...Ch. 2 - Nature of transactions Cheryl Alder operates her...Ch. 2 - Net income and dividends The income statement of a...Ch. 2 - Net income and stockholders’ equity for four...Ch. 2 - Prob. 2.14ECh. 2 - Prob. 2.15ECh. 2 - Balance sheet, net income, and cash flows...Ch. 2 - Income statement After its first month of...Ch. 2 - Statement of stockholders’ equity Using the...Ch. 2 - Prob. 2.19ECh. 2 - Statement of cash flows Using the financial data...Ch. 2 - Effects of transactions on Accounting equation...Ch. 2 - Prob. 2.22ECh. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements Les Stanley...Ch. 2 - Transactions and Financial statements James...Ch. 2 - Transactions and Financial statements James...Ch. 2 - Transactions and Financial statements James...Ch. 2 - Transactions and Financial statements James...Ch. 2 - P2-3 Financial statements The following amounts...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Financial statements Padget Home Services began...Ch. 2 - Missing amounts from Financial statements The...Ch. 2 - Financial statements Alpine Realty. Inc.,...Ch. 2 - Prob. 2.1MBACh. 2 - Prob. 2.2MBACh. 2 - MBA 2-3 Common-sized income statements Delta Air...Ch. 2 - MBA 2-4 Common-sized income statements Southwest...Ch. 2 - Prob. 2.5MBACh. 2 - MBA 2-6 Common-sized income statements Kellogg...Ch. 2 - MBA 2-7 Common-sized income statements General...Ch. 2 - Common-sized income statements Using your answers...Ch. 2 - Prob. 2.9.1MBACh. 2 - Prob. 2.9.2MBACh. 2 - Business emphasis Assume that you are considering...Ch. 2 - Business emphasis Assume that you are considering...Ch. 2 - Business emphasis Assume that you are considering...Ch. 2 - Prob. 2.2CCh. 2 - Prob. 2.3CCh. 2 - Prob. 2.4.1CCh. 2 - Prob. 2.4.2CCh. 2 - Financial information Yahoo.com’s (YHOO) finance...Ch. 2 - Prob. 2.4.4CCh. 2 - Prob. 2.4.6CCh. 2 - Prob. 2.4.7CCh. 2 - Prob. 2.4.8CCh. 2 - Prob. 2.4.9CCh. 2 - Financial information Yahoo.com’s (YHOO) finance...
Knowledge Booster
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • Scenario:  Steve Osbourne is considering opening a business, but the major decision faced is how to organize the business. Steve anticipates generating a massive profit during the first year and that the following years should be relatively profitable. Although he has enough to start the business now as a partnership, he believes cash flow may be an issue as the company grows. Steve believes that the corporate form of operation will be his best option and have hired you as a consultant and seek your advice.  Requirements: Answer the following questions for Steve. Is it true or false that corporations muse issue common stock, but may or may not decide to issue preferred stock?  Is it true or false that all forms and classes of stock carry voting rights? Is it true of false that stock sold for amounts in excess of par value results in a gain reported on the income statement?
    Scenario:   Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements: State three (3) of the main advantage they gain by selecting a corporate form of business now. Would you recommend they initially issue preferred or common stock? Why? If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer.    Assume one year later…
    Scenario:   Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements     State three (3) of the main advantage they gain by selecting a corporate form of business now. Would you recommend they initially issue preferred or common stock? Why? If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer.    Assume one year later…
  • Scenario:   Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements: State three (3) of the main advantage they gain by selecting a corporate form of business now. Would you recommend they initially issue preferred or common stock? Why? If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer.    Assume one year later…
    Scenario:   Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements: State three (3) of the main advantage they gain by selecting a corporate form of business now. Would you recommend they initially issue preferred or common stock? Why? If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer.
    Scenario:   Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements: State three (3) of the main advantage they gain by selecting a corporate form of business now.
  • Scenario:   Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements: State three (3) of the main advantage they gain by selecting a corporate form of business now. 3. If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called?  Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer
    Scenario:   Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements     State three (3) of the main advantage they gain by selecting a corporate form of business now. Would you recommend they initially issue preferred or common stock? Why? If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer.    Assume one year later…
    Scenario:   Catherine and Tariq are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements:  Assume one year later (2019) the company CT Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information:   The company’s charter authorizes 1,000,000 shares of common stock and…
  • Scenario:   Karen and Yanique are opening a jewellery store with no competition in the area from which they intend to operate their business. Their fundamental decision is how to organize the business. They anticipate super profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. Requirements: Would you recommend they initially issue preferred or common stock? Why? If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer.
    Scenario:Steve Osbourne is considering opening a business, but the major decision faced is how to organize the business. Steveanticipates generating a massive profit during the first year and that the following years should be relatively profitable.Although he has enough to start the business now as a partnership, he believes cash flow may be an issue as thecompany grows. Steve believes that the corporate form of operation will be his best option and have hired you as aconsultant and seek your advice.  c) Explain the term outstanding stock.d) Is it true or false that corporations muse issue common stock, but may or may not decide to issue preferredstock?
    Scenario. Two graduate students started an appliance business in an area where there is no competition. Their fundamental decision is how to organize the business. They anticipate super-profits the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow and as such, they feel the corporate form of operation will be best for the long term. They seek your advice. State three (3) of the main advantage they gain by selecting a corporate form of business now. Would you recommend they initially issue preferred or common stock? Why? If the corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer.
    • SEE MORE QUESTIONS
    Recommended textbooks for you
  • FINANCIAL ACCOUNTING
    Accounting
    ISBN:9781259964947
    Author:Libby
    Publisher:MCG
    Accounting
    Accounting
    ISBN:9781337272094
    Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
    Publisher:Cengage Learning,
    Accounting Information Systems
    Accounting
    ISBN:9781337619202
    Author:Hall, James A.
    Publisher:Cengage Learning,
  • Horngren's Cost Accounting: A Managerial Emphasis...
    Accounting
    ISBN:9780134475585
    Author:Srikant M. Datar, Madhav V. Rajan
    Publisher:PEARSON
    Intermediate Accounting
    Accounting
    ISBN:9781259722660
    Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
    Publisher:McGraw-Hill Education
    Financial and Managerial Accounting
    Accounting
    ISBN:9781259726705
    Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
    Publisher:McGraw-Hill Education
  • FINANCIAL ACCOUNTING
    Accounting
    ISBN:9781259964947
    Author:Libby
    Publisher:MCG
    Accounting
    Accounting
    ISBN:9781337272094
    Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
    Publisher:Cengage Learning,
    Accounting Information Systems
    Accounting
    ISBN:9781337619202
    Author:Hall, James A.
    Publisher:Cengage Learning,
    Horngren's Cost Accounting: A Managerial Emphasis...
    Accounting
    ISBN:9780134475585
    Author:Srikant M. Datar, Madhav V. Rajan
    Publisher:PEARSON
    Intermediate Accounting
    Accounting
    ISBN:9781259722660
    Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
    Publisher:McGraw-Hill Education
    Financial and Managerial Accounting
    Accounting
    ISBN:9781259726705
    Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
    Publisher:McGraw-Hill Education
    Why do we need accounting?; Author: EconClips;https://www.youtube.com/watch?v=weCXE2wIl90;License: Standard Youtube License