An owner contributes $50,000 to expand the business. This transaction wouldincrease expensesincrease capitalincrease incomedecrease income

Required informationSkip to questionHardware House: Finding Sources of Cash for Expansion This activity is important because if you decide to start your own business, you may be faced with difficult decisions regarding how to structure the ownership of that business. While the majority of businesses operate as a sole proprietorship, many grow beyond the capability of a sole proprietorship and evolve into a different type of ownership. For example, companies often need to evolve their ownership in order to acquire cash necessary to expand the business. The goal of this exercise is to demonstrate your understanding of the different ways that businesses can be organized. Read the case of describing the growth of a small start-up manufacturing organization and answer the questions that follow. Case:Doug Datner had an eclectic background. He completed his law degree from the University of Virginia, then went to work for a technology start-up in Dubai. After the start-up was purchased by a larger corporation, affording Doug a hefty sum of money, Doug and his spouse returned to the United States. While working with an architect and a designer to build their dream home, they realized that there was not a provider of high-quality custom-made door and window hardware at a reasonable price point in the United States. Even though Doug had no experience in the field, he decided to start a business manufacturing high-quality custom-made door and window hardware. He named the company Hardware House. Doug and his wife cleared space in their newly constructed garage, designed several basic prototypes, and hired a metalwork expert to replicate their prototypes. They decided to have a few designs in catalog as one component of their business, but have the capability to alter those designs to provide designers with custom hardware.  The first few years were tough. Business was steady enough to hire a second metalwork expert, but cash flow challenges often made Doug worry whether he would be able to pay his metalwork experts on time. Still, the Hardware House had gained a number of consistent clients, and was able to move into an old warehouse space and expand operations. Ten years later, Hardware House has nearly 100 employees. While the majority of the employees work in manufacturing, there are also employees in marketing, design, accounting, and human resources. Doug structured the business to limit his liability in case of lawsuit but still managed to maintain the business without sharing ownership.  Doug has determined that the most advantageous way to acquire cash is to sell stock to public markets. Doug will need to file which of the following? Multiple Choiceinitial public offeringarticles of partnershiparticles of incorporationlimited liability corporationquasi-public corporation

Jackie, a sole proprietor, needs to raise $200,000 to expand her operations. Under which of the following financing arrangements is she likely to obtain more perquisites such as a lavish expense account?Multiple choice question.Jackie sells off her assets to raise $200,000.Jackie uses her personal inheritance to raise the $200,000.Jackie borrows $200,000 and retains full ownership.Jackie brings in an additional partner and reduces her ownership share.

Introduction capital by owner of business is recorded on which side of a cash book? A. Receipts B. Payments C. Incomes D. Expenditures

The statement below is likely from which of the following type of business and form of organisation:Income StatementFor the year ended 30th Junerevenue$250 000 Cost of salesGross profitExpenses:Selling expensesFinancing expensesGeneral & administrative expensesTotal expensesNet profit before taxIncome tax expenseNet profit after tax100 000       50 00010 00050 000    150 000  110 00040 00012 00028 000Question 9Answera.a service companyb.a merchandising sole-proprietorshipc.a merchandising partnershipd.a merchandising companye.a service sole-proprietorship

A friend of the owners contributes $40000 to become a part owner.  Select the flows and accounts that the business would use to record this transaction.