Johnson will be personally taxed on all of Smithons income. This has the favor of eliminating the double taxation commonly associated with a C-Corporation. However, it will improver Johnsons current tax liability. there is usually no benefit to an S-corporation for a wealthy singular who is already in the go on tax bracket. S-Corporation income tends to favor start-up businesses and taxpayers with humble income, because the corporation is taxed at the individuals sink personal income tax rate.
(2012). J.C. Penney’s risky new pricing strategy. Harvard Business Review. Retrieved from ProQuest. Review the article: Is your own buying behavior influenced by coupons and sales?
Hugh McBride will address who the company’s stakeholders are, define the end-state vision, identify and evaluate alternatives, identify and access the risk of the alternatives, recommend optional solutions, create and implement solutions, and to access the outcomes. Beltway Investments are McBride Financial Services major investor. There are some that anticipate for the company to be run by implementing corporate governance. The company’s CEO has decided not to implement this option. The new CEO would rather operate the company without interference of the “money man.” Even though, this maybe a gamble due to corrupt the thinking that would affect Beltway’s public credit.
As a C-corporation the business, not the owner, would be held liable for any financial damages. Any accidents involving employees or customers would be the responsibility of the corporation to settle. Financially speaking incorporating is the best option because as a sole proprietorship the owner is currently paying a much higher tax rate versus the corporate tax rate. With the tax code being different for corporations there is better profit retention and security. The client also mentioned the issue of partnership and the selling of stock in order to expand the company.
These statements constitute a threat because they demonstrate that the company was making attempts to influence employees regarding the union vote by making viable threats regarding existing benefit packages. This is an important consideration to make because it represents a means by which the organization sought to overcome the influence of the union by attempting to dissuade employees from voting one way regarding the vote. 2. Do the employer statements constitute an unlawful promise of benefits in violation of Section 8(a) (1) or the act? Why or why not?
1. Outright purchase of Smith stock a) Yes, Mr. Jones should purchase the stock of Smith outright, leaving Smithon intact as purchasing the stock of Smith co. is the simple and reasonable transaction where he can also minimize the cost of administrative matters. While issuing debt in his Johnson Services Co. to pay for the Smith Company there can arise debt issue for Johnson co if the cash flow of the company is insufficient in making such purchase to buy Smith co stock. b) Converting C corp to S corp has taxation benefit as C corp faces double taxation. Here, converting Smithon to S corp can give an advantage of having a control of limited or small number of shareholders.
The company at hat served the public best would be favored in a competitive situation C. My opinion is that there should be a balance between competition and government involvement. A competitive situation would keep utility employees striving to satisfy the needs of their customer. Without competition some employees could become indifferent to customer satisfaction as the customer can not go anywhere else. Government involvement would be important by setting standards that must be adhered to by competing companies as far as level of service and also ensure that the competing companies can not fix pricing to consumers and artificially control what the consumer will
The cable companies get away with this by claiming they do not have competition, cities award them the contract by providing coverage, even though they may not have the lowest price. So who’s to say that state regulators from unofficially granting a monopoly to a provider with incentives? The monopolies set their price high, politicians reap the rewards and were forced to take it and like it, or go without. Other monopolies that doing business in this manner are electric companies, transportation and telephone companies. Financial markets are another element in our economy which the government once again has their hands in our pockets.
CAGR: Operating income, % Operating income (EBIT) measures a company's earning power from ongoing operations and it largely used by investor because it excludes the effects of different capital structures and tax rates used in different companies. EBIT is "capital structure neutral" and is therefore a more appropriate way of comparing the earnings of different companies than net income
What would happen to this stakeholder if I tried to help them in this situation? Who are the primary stakeholders in this problem? The Shareholders (Correct) The original notion was that the shareholders were the only stakeholders of any consequence. The purpose of a company was to maximize shareholder value. The stakeholder theory acknowledges the shareholder’s importance but asserts that they aren’t the only ones whose interests should be considered.