Financial Management Chapter 20 - FDU - Financial Management - Assignment

770 words - 4 pages

Financial Management
Chapter 20 Review Questions
1. The 5 types of income that must be reported on an individual’s tax return are:
· Wages
· Salaries
· Tips
· Interest and Dividend Income
· Business income or loss from a sole proprietorship
2. Tax deductions are amounts deducted from adjusted gross income to determine taxable income; taxpayers should itemize their deductions if their total deductions exceed the standard deduction. Tax credits on the other hand, are deducted directly from taxes due. Credits deductible from income taxes include, but are not limited, credit for child and dependent care expenses, education credits, and foreign tax credit.
3. The major disadvantages of a sole proprietorship are:
· The sole proprietor has unlimited personal liability for the obligations of the business.
· Most non-taxable fringe benefits are severely limited or completely disallowed if they are for the benefit of the sole proprietor.
· The transfer of a portion of the ownership interest in a sole proprietorship requires a change to either a partnership or corporate form.
· The continuity of the business is not assured at the death of the owner.
· The sole proprietor is generally unable to raise a large amounts of capital.
4. The major disadvantage of a corporation are:
· Higher corporate tax rates – corporate tax rates may be higher than individual tax rates.
· Double taxation – corporate profits are taxed twice.
· The corporation cannot pass through to the owner’s favorable tax advantages, such as operating losses and tax credits, that might be more advantageous to the owners than to the corporation.
5. The disadvantage of individual unlimited liability can be overcome by incorporating; however, incorporation results in double taxation which can be avoided by filing as an S corporation or as a LLC and are limited to one type of stock and 100 or fewer stockholders.
6. Tax avoidance is the planning of a transaction to mitigate the impact of taxes or avoid the application of taxes completely; this is entirely legal and should be aggressively pursued. Tax evasion is the fraudulent denial or concealment of a current or future tax liability, such as under-reporting income or claiming unsubstantiated deductions.
7. Two limitations to S corporations are:
· Having 100 or fewer stockholders
· Having only one class...

More like Financial Management Chapter 20 - FDU - Financial Management - Assignment

Financial Resource Management - WGU C428 - Assignment

2025 words - 9 pages ... . This, obviously, is our main goal. Add everything together and an HMO plan greatly impacts better fiscal management health as the process of planning, directing and controlling financial resources is much easier. PPO Plan: Recommending a PPO plan has much to do with the fact that no gatekeeper physicians are involved. Patients (employees) are more free, thus can keep their previous providers if they are willing to pay a tad more at times. While ...

Paper On Financial And Risk Management

4507 words - 19 pages ... Student Number: s173768 Module: Financial and Risk Management Module Leader: Dr. Atul Shah Assignment Title: John Lewis Partnership Assignment Weighting: Assignment 1: Semester 1 Hand-out Date: 14th May 2017 Hand-in Date: 12:00 Noon, 29th May 2017 Assignment Length: 4000 words +-10% Actual word count: 4126 Words Table of Contents 1. Evaluate the core business of JLP and its key sources of Risk, Profit, and Financial Value. Critically analyze ...

Paper On Financial Management: IBM

1955 words - 8 pages ... not to base their investment decision on this measure alone. The denominator (earnings) is based on an accounting measure of earnings which is susceptible to forms of manipulation making the quality of the P/E only as good as the quality of the underlying earnings number.Reference:1. Andrew, J. Gallagher, J. (2003). Financial Management, Principles and Practice. 3rd Edition. Upper Saddle River, N.J.; Pearson Education, Inc.2. Gallagher, T.J. and ...

Corporate Financial Management - Case Study

802 words - 4 pages ... PINNACLE ELECTRONICS Generating Less Cash even though More Sales and Higher Profits James Chia, the Chairman and major shareholder of Pinnacle Electronics Group, had just received the audited financial statements of the company for the year ended 31 December 2012. He had been told that while sales were only slightly better than in 2011, the profits at almost $10 million were double the $5 million achieved in 2011. He was very pleased ...

Desktop Upgrade Management Project And Financial Analysis And Human Resource And Potential Risks - Project Management - Assignment

760 words - 4 pages ... could be addressed through an upgrade of the fleet. There is the opportunity to hire and train project staff, to engage in the Desktop Upgrade project, these people will be upskilled, have greater project and technology knowledge, which then can be used on future projects, less efforts and time wasting in rehiring and retraining project personnel. Further, engaging in Supplier and procure management activities the organization will have built strong ...

This Assignment Is A Case Study For A Professional Financial Management Class - Missouri State/ FIN 581 - Assignment Case

768 words - 4 pages ... investment asset. This does not match their risk tolerance. William’s should diversify their portfolio and obtain more growth stocks. Risk Management- Michelle is currently working and should look to obtain disability insurance. The William’s do have adequate amounts of homeowners and automobile insurance. Michael should obtain more life insurance to ensure the future financial needs of his children. Estate Plan- The William’s urgently need to ...

Financial Literacy Assignment #1 - Financial Literacy - Assignment

1564 words - 7 pages ... assignment. At the end of each day, be sure to save your progress. Review Lesson 4 of the Course Overview for instructions about turning in your assignments. Assignment Questions 1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points) One example of an important thing that financial planning skills can help me do is create a ...

Consumer Annual Financial Report - Accounting - Assignment

3855 words - 16 pages ... combining and individual fund statements, the auditors report declares that while they may be the responsibility of management, they have still been subject to the auditing procedures applied in the audit of the financial statements and certain additional procedures. In the opinion of the auditor, the combining and individual fund statements and budgetary comparison schedules have been fairly stated, in all material respects relating to the basic ...

UCSD Finance Mgmt- Chapter Solutions - UCSD -finance Management - Homework Solutions

1108 words - 5 pages ... Solutions to End-of-Chapter 9 Problems 9-8 a. b. 9-9 a. The preferred stock pays $8 annually in dividends. Therefore, its nominal rate of return would be: Nominal rate of return = $8/$80 = 10%. Or alternatively, you could determine the security’s periodic return and multiply by 4. Periodic rate of return = $2/$80 = 2.5%. Nominal rate of return = 2.5% 4 = 10%. b. EAR = (1 + rNOM/4)4 – 1 = (1 + 0.10/4)4 – 1 = 0.103813 = 10.3813%. 9-11 First ...

International Business Management - Acsenda School Of Management. International Business Management - Assignment

1078 words - 5 pages ... Introduction to international business management expanded my knowledge about what it is required to successfully manage a business that operates internationally. In the last 11 weeks I have learnt many concepts concerning international business management from the classroom lectures, the textbook and the course contents online but I will summarize my most significant lessons from the course. Based on the overview of international business I ...

International Business Management - Acsenda School Of Management. International Business Management - Assignment

1097 words - 5 pages ... Running head: ANALYSIS OF A CURRENT TOPIC 1 ANALYSIS OF A CURRENT TOPIC 2 Analysis of A Current Topic Emmanuel Ifepe (3156010) Acsenda School of Management Professor: Sylvain Charbonneau BIBM101: Introduction to International Business 6th of June 2018 US slaps tariffs on EU steel and aluminium Before I go into the topic I will talk about some terms on the topic as regards to the course contents briefly. According to chapter 3 of the course ...

Management Economic - Admission And Marriage - VNU - Assignment

581 words - 3 pages ... Discussing “College admissions and the stability of marriage” of D.Gale and L.S.Shapley. Gale and Shapley paper confirmed that the issue of marriage and college admissions is equivalent. From the first theorem: “An assignment is optimal if every applicant is at least as well off under it as under any other stable assignment”, the authors make a few assumptions that carry throughout their paper. The first of these is that there are no ties in how ...

Information Management Business Opportunities - Univeersity - Assignment

2576 words - 11 pages ... PAGE Using writing techniques Khanya Mangoale 201373025 Information Management 1A Research Report 2 Due date: 22 April 2017 Lecturer: Mr. J Arthur Table of contents Page 1. Introduction 3 2. Business opportunity 3 3. Business Systems thinking 4 4. Architecture planning 5 5. IT Architecture 5 6. Service delivery 8 7. Vendor Development and Contract monitoring 9 8. People 9 9. Relationship building 9 10. Leadership 9 11. Contract ...

Project Management- Homework Help For Chapter 1 - West Texa Atm - Homework Help

5683 words - 23 pages ... 7 Instructor Manual for Managing and Using IS, Sixth Edition-Chapter 1 Page 1 Chapter 1: The Information Systems Strategy Triangle Overview This chapter presents a very simple framework, the Information Systems Strategy Triangle, which links business strategy with organizational strategy and information strategy. The chapter describes this model, and builds on several other popular strategy models and organizational models. The goal of this ...

The Financial Accounting And Standards Board, FASB Is An Organization That Sets Down The Accounting - MBA - Assignment

575 words - 3 pages ... the financial statements are investors, market analysis, creditors and auditors. With the information provided in the financial report, they are able to see how the business is being managed and how the management has been useful to the company. It is implicated for the needs of the users, like investors, creditors.  SAFC No. 2 explains the qualitative characteristics that are considered useful and understanding in the report for the users. The ...