history because the government cut taxes for rich Americans. Tax cuts mean that people would be able to keep more of their money instead of giving it to the government. Having more money on hand allows people to spend more. Some invested in stocks. United States History and New York History: Post-Civil War to the Present says that tax cuts would "give the wealthy an incentive to invest... the economy created new, better paying jobs."
Some pros to having Social Security replaced is that the induvial has more control of its retirement fund then they will with Social Security. Private funds make Americans capable of making their own decisions about how their retirement contributions are invested. If Americans invest in private funds they are investing in private capital markets which can produce net increase depending on how the government handles the transition of Americans replacing social security with trust funds (Tanner). Although, private funds sound like a good replacement for social security “many people lack the basic financial literacy to make wise investment decisions on their own” (Privatizing Social Security). Social security has started to face many financial difficulties over the years and resorting to private funds would actually make the social security problem worse.
Conversely, portfolio analysis is conducted at market level by evaluating the performance of a portfolio of stocks. Additionally, the purpose of portfolio analysis is to improve investments whereas SWOT analysis is used to enhance the performance of a business. Moreover, SWOT analysis are obtained through both quantitative and qualitative data and relies heavily on assumptions. On the other hand, portfolio analysis is strictly based on quantitative (financial and economic) data. Finally, SWOT analysis is mainly useful for generating strategic ideas for business growth and is used by most firms whereas portfolio analysis is only useful to businesses that own stock and have their own investments in other firms.
When you have money how do you act? Many people in the world believe that being rich and having good money defines what kind of person you are. Money should not identify the kind of person you are. In A Raisin in the sun the character Walter really wants money to help him and not his family, but it should never be like that family should go first. In A raisin in the son Walter really wants to open a liquor store to help out the family, but the family really needs a new house with the insurance money from mama.
Despite the multiple benefits there are also some of disadvantages. The corporation having become taxable, its income will be subject to tax. This will lead to double taxation. When shareholders receive dividends they will have to include it in their own calculation of taxable income. This has the effect of paying twice the taxes.
If Wrigley decided to issue debt, they could either pay dividends or repurchase shares. The main advantage of paying dividends is to keep the interest of the shareholders' in the company's stock. On the other hand, the advantage of buying back shares would be for the Wrigley family to hold more control over the company. Also, buying back shares reduces the balance sheets assets and total liabilities and stockholders' equity. 5 Recommendations I recommend that Wrigley does take the $3 billion of debt.
College tuition has been a touchy subject to many people, more for juniors, seniors in highschool and their parents because this is their kids future. College tuition is out the roof with tuition and how expensive it is. In my interview with Desirae Harrison she stated “ I have 40,000 dollars in debt. It would have been worse but I got ⅔ of my college paid for.” After that I asked her “what was her opinion on college expenses?” She answered “Personally it shouldn’t be as expensive because everyone expects our economy to rise but we cant fill jobs that need qualified individuals if those individuals can't get qualified due to expenses.” Today it's so backwards because they expect the next generation to take on the jobs of the older generations but it's becoming quite impossible with the college
LLC Pros: Presents the opportunity for an individual to be taxed as a sole proprietor, partnerships, along with S and C Corporation. This type of business entity also has less paperwork along with filing costs. The members are exempt from any liabilities or legal issues the company may experience. The most beneficial may be that owners’ responsibility for any debt is limited despite having control the company Cons: Typically corporations are more expensive to startup compared to sole proprietorship or partnerships. At times an LLC business may find when starting up this type of business their budget is tight leaving them not able to pay themselves wages.
Business’ can benefit from the investments that go on in this market also. The stock market can affect businesses and individual people through taxes, income, or money loss. When it comes time for a person to pay his or her taxes, it can be a little more complicated than usual if he or she has invested in a business. Miriam Caldwell said, “While most people are aware of the taxes related to selling stocks, they may not be aware of
According to the Small Business Encyclopedia accounts receivalbe is “the money due from all customers for merchandise or services delivered on credit.” On the balance sheet accounts receivable is shown as a short-term asset. Accounts receivable appears when the company bills the customer for the goods or services with the bill for not immediate, but for later payment. So, accounts receivable meaning is - the cash “to be received” and therefore accounts receivable has an impact on the cash flow of the company. On the one hand – accounts receivable is very positive thing, on the other – quite risky. Accounts receivable reflects the sales that company is making.
Answer B: If planning an audit for Verizon Communications Inc., it is more appropriate to allocate planning materiality to the balance sheet instead of the income statement accounts because Verizon utilize a double-booking accounting system for which most of their income statement misstatements will have an equal effect on the balance sheet. Therefore, a reasonable material threshold is determinable as a percentage of total assets, total liabilities, and total equity. Additionally, since the financial statement users are concerned with the growth of the company and its ability to generate revenue, operating income before taxes is the appropriate account to populate a materiality threshold. Total Assets: The appropriate preliminary judgement
We need more powerful advocates from politics and business to expand tax incentives for small business owners. We also need to reform tax loopholes. Some corporations have exploited these loopholes to offer lavish compensation packages to its top executives. The author ends by saying, that we must offer tax benefits only to those who offer profit sharing or shared ownership plans to all
Thus, if the legislature finances their capital then the wealthy should pay a sufficient share of the governments taxes. However, when concerning the financial state of the economy Piketty advocates that, “high compensation in the U.S today has little to do with managers’ productivity and almost everything to do with the cozy relationship between managers and corporate boards.” (Boundreaux 288). This statement means that the government works closely with corporations to aide them with tax cuts. Hence, in the 1980’s when businesses competed, because the market economy was already diminishing wages and benefits declined as profits enlarged, which created inflation (Yates 10). However, this oligopolistic form of competition soon was
Oil and gas companies use LIFO, much like the rest of the business world, to gain the tax benefit that LIFO provides. However, LIFO allows Chesapeake to record the cost of inventory at the most recent price paid- even though some of the inventory was purchased when oil was selling at a much lower price. Profits would then be understated for that particular year since LIFO would yield a higher cost of goods sold. Although it is legal to use LIFO as an accounting method for inventory Chesapeake could change the estimates and assumptions used to calculate LIFO balances and the LIFO reserve. Further changes to LIFO balances can exacerbate the effect that LIFO has on the income statement.