ACCMGTHome work 1 - Problem Set 1 1.1 Capital: What are the...

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Problem Set 1 1.1 Capital: What are the two basic sources of funds for all businesses? 1.2 Management role: What is working capital management? 1.8 Organizational form: What are the three forms of business organization discussed in this chapter? 1.12 Organizational form: Explain what is meant by stockholders’ limited liability. 1.13 Organizational form: What is double taxation? 1.22 Agency conflicts: What are some of the regulations pertaining to boards of directors that were put in place to reduce agency conflicts? 1.23 Business ethics: How could business dishonesty and low integrity cause an economic downfall? Give an example. Question: You want to compare the earnings from two different legal forms for a firm: Corporate and Proprietor. Your pre-tax income is $500,000 in both. However there is a difference in the taxes you pay. 1) Corporate pays corporate tax rate of 30%. After paying corporate taxes the rest is distributed as dividends to owners. They pay personal tax on these dividends at the rate 18%.
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2) Proprietor pays personal tax on 36% only. Create an Excel worksheet in which you show the pre-tax earnings, the taxes paid, the earnings
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ACCMGTHome work 1 - Problem Set 1 1.1 Capital: What are the...

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