Homer, single & Marge, married with one child, are starting a business to provide computer consulting services, web design and software development. They will locate in Los Angeles, California. Homer is willing to contribute $50,000 to the business. Unfortunately, Marge has no money to contribute, but has the computer expertise, the essential contacts and is a graduate of the UCLA Anderson School. In fact, Marge already has two potential new clients, one located in Arizona. They hope to open a second office in Arizona within a few years. They would like to participate equally in making all decisions. They estimate that $100,000 will be enough money to pay all expenses for 12 months at which time they project that revenues will cover expenses. Homer and Marge plan on reinvesting most of the earnings with the goal of expanding and selling the business. They have decided on the name Virtual Construction, Inc., but will be doing business as "Vircon."

Assuming a few friends of Marge’s, (Sven, Harry and Steven) feel the business will be very successful and would like to invest. Sven lives in and is a citizen of Sweden. He only visits the United States once or twice a year. They are all content to be passive investors.

A) What form of legal entity do you recommend if only Homer and Marge decide to participate in this business venture and why?
B) What form of legal structure do you recommend if Homer, Marge, Sven, Steven, and Harry participate, and why?

Which of the following statements accurately describes how costs and benefits are calculated?

Assume that all of thurmond company’s sales are credit sales. it has been the practice of thurmond company to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. for the year 20x1 the company had net credit sales of $2,021,000 and the allowance for doubtful accounts account had a credit balance, before adjustments, of $630 as of december 31, 20x1. during 20x2, the following selected transactions occurred: jan. 20 the account of h. scott, a deceased customer who owed $325, was determined to be uncollectible and was therefore written off. mar. 16 informed that a. nettles, a customer, had been declared bankrupt. his account for $898 was written off. apr. 23 the $906 account of j. kenney & sons was written off as uncollectible. aug. 3 wrote off as uncollectible the $750 account of clarke company. oct. 20 wrote off as uncollectible the $1,130 account of g. michael associates. oct. 27 received a check for $325 from the estate of h. scott. this amount had been written off on january 20 of the current year. dec. 20 cater company paid $7,000 of the $7,500 it owed thurmond company. since cater company was going out of business, the $500 balance it still owed was deemed uncollectible and written off. required: prepare journal entries for the december 31, 20x1, and the seven 20x2 transactions on the work sheets provided at the back of this unit. then answer questions 8 and 9 on the answer sheet. t-accounts are also provided for your use in answering these questions. 8. which one of the following entries should have been made on december 31, 20x1?

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.