663 you decide Y O U D E C I D E | | Activity | 1. John Smith tax issues: a. How is the $300,000 treated for purposes of federal tax income? The $300,000 will have to be treated as ordinary employment income, subject to federal and state income taxes. b.
rejection by entering into a substitute transaction, he is excused from performance obligations B. Determined by Little condition is not completely within the promisor's control C. Sufficient cause An agreement that gives one party an unfettered right to terminate at any time will be interpreted to require “reasonable notice,” thus placing a limitation on that party's freedom sufficient to satisfy the consideration requirement 1. Certain terms (open) buyer is constrained to request amounts that are not unreasonably disproportional there is clearly consideration for the modification and it is enforceable the modern rule, an offer for a unilateral contract becomes an option for the offeree 2.
Relevant financial information contributes to sound business solutions. For example, the predicted future costs and revenues that differ among alternatives are essential to financial decisions. Currently, Guillermo’s patented finishing coating does not have a large market audience as does the flame-retardant coating. Thus the company has determined that it could purchase another finishing product that would add the same amount of value to its custom furniture. This alternative requires consideration of the opportunity cost of eliminating in-house production of the finished coating.
30% Withholding Tax Nonresident individuals earning rental income and other fixed and determinable annual or periodic income which are not effectively connected with trade or business are taxed at a flat rate of 30%, withheld by the tenant. Electing Business Income Option Nonresident individuals earning rental income can elect to consider this income as effectively connected with trade or business. Through this option, the taxpayer will be taxed on his net income at progressive rates. CAPITAL GAINS TAX Capital gains incurred for the transfer of property in Guam is taxed as in the US. The taxable gain is computed by deducting the acquisition costs (adjusted for inflation) and transfer costs from the selling price.
The analysis of decision under risk requires a different approach to that of standard consumer (and producer) theory, uncertainty is pervasive therefore an extension of theory needs to take uncertainty into account. Uncertainty arises because the consequence of at least one option to the decision maker is unknown (i.e. is not a single sure outcome, but a number of possible outcomes) (Gravelle, Reese. 2004) however we assume that the probabilities of the possible outcomes are known. The clearest examples of individual’s choice between uncertain options are provided by gambling and insurance.
If it were not for the protection of patents, big companies, with their robust capacity, would surpass the small business entrepreneurs in speed and cost of production and thereafter suppress them completely. However, the excludability that patents impose on non owners of the inventions does not see capacity. This helps small business entrepreneurs to practice their own inventions while big companies remain hands-tied. ii) Revenue from licenses, sale or infringement. Licensing ones technology to others is another good way of making money.
DFA roughly believed in efficient market theory. They believed that the high return of small stocks and value stocks come from high risk which matched the efficient market theory. Moreover, they would not do any fundamental analysis of the firm in question. (p6) At the same time, however, they did some adjustments based on other two principles, sound academic researches and skilled traders, to get rid of those not matching the theory. For example, they did not purchase those stocks with inside trade information.
A joint venture is more formal in nature and have you locked in for the longer term. A strategic alliance is the one were its less formal and gives certain flexibilities to the parties involved in how business will be financed and operated. This case could be considered to be a joint venture from the question text. Martha Stewart using her name as a branding tool, she can still operate her business while they work together in this chain of particular products but don’t limit her from making other similar ventures with other businesses. In the business of branding, negative reviews could cost you a lot and therefore it is important that she makes a decision that will not her now and also in the close future.
This method I believe is more accurate in maintaining financial records at the end of the year and providing a better financial look into how a company is managing. Cash accounting is when companies record revenue only when cash has been received. Cash accounting even if the service was rendered if no cash was received the company will not record the expense. By only recording expenses when bills are paid, the company may be able to shift expenses into other periods in order to make the company look more profitable simply by manipulating when payments are made. This can make the financial statements misleading.
Defaulting on a charge card might prompt gathering endeavors, yet lenders can't take your resources for pay for the obligation. Some individual loans are viewed as unsecured loans on the off chance that you didn't set up any of your property as security for the loan. Defaulting on unsecured loan installments can prompt negative results, for example, harm surprisingly, unforgiving gathering endeavors and legitimate activity. Another illustration of an unsecured loan is an understudy loan. For the most part, understudy loans are dealt with truly by the loaning organization and defaulting on such loans can prompt critical results.