Ask Question
BusinessBusiness
6 May, 05:30

Why did it make sense for the owners of the Speisekammer restaurant business to be a regular corporation (a C-corporation) when they first opened for business?

+2
Answers (2)
  1. 6 May, 05:45
    0
    Answer:They wanted to go public eventually

    Explanation: A Regular corporation is a term used to describe small business that incorporates, they are usually classed as C-corporations. A corporation as a business entity has members of the public as part owners and they are liable to share both the profits and the loss of such Company.

    A corporation is regarded in the law as an individual who is capable of being sued and it also has that capacity to sue any offending party.
  2. 6 May, 05:46
    0
    They wanted to go public eventually.

    Explanation:

    A C corporation is one that is a seperate entity from its owners. The owners are not liable for damages brought against the company. The company is also taxed seperately from the owners.

    For example if the the corporation gets a bad court ruling and all its assets has to pay for the judgement sum, owners will not be liable for any extra on the judgement sum in cases where company assetbis insufficient to settle.

    This is similar to what is obtainable with publicly traded companies, and the owners of the Speisekammer restaurant business are most likely considering taking the company public. That is why they chose the C corporation structure.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Why did it make sense for the owners of the Speisekammer restaurant business to be a regular corporation (a C-corporation) when they first ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Ricky and Anita are 10 year-olds who have a lemonade stand on a busy beach and would like to practice price discrimination.
Answers (1)
Assume a drought in the Great Plains reduces the supply of wheat. Noting that wheat is a basic ingredient in the production of bread, and potatoes are a consumer substitute for bread, we would expect the price of wheat to
Answers (1)
Which all managers have, is power that results from a manager's authority to reward his or her subordinates. rewards can range from praise to pay raises, from recognition to promotions?
Answers (1)
Our company pays an average wage of $12 per hour to employees for printing and copying jobs, and allocates $18 of overhead for each employee hour worked. Materials are assigned to each job according to actual cost.
Answers (1)
There are external benefits associated with the production of batteries. Without government regulation, the market will:
Answers (1)
New Questions in Business
Which two actions should you take during an informational interview? Tell the interviewer that you would be willing to take any job an employer offers to you.? Encourage the interviewer to do most of the talking during the interview.
Answers (1)
International trade, and changes in the aggregate price level. a. Suppose that the MPC is equal to 0.75. What was the size of the change in government purchases of goods and services that resulted in the increase in real GDP of $200 million? b.
Answers (1)
Carla Company was formed on December 1, 2016. The following information is available from Carla's inventory records for Product BAP. Units Unit Cost January 1, 2017 (beginning inventory) 708 $ 7.00 Purchases: January 5, 2017 1,416 8.
Answers (1)
Service Potential of the CAFR. In your opinion, what are the most important information needs that a government annual report should fulfill for each of the following: 1, Administrators 2. Members of the legislative branch 3. Interested residents. 4.
Answers (1)
Schneider Inc. had salaries payable of $60,000 and $90,000 at the end of Year1 and Year2, respectively. During Year2, Schneider recorded $620,000 in salaries expense in its income statement. Cash outflows for salaries in Year2 were: a. $590,000. b.
Answers (1)
Home » Business » Why did it make sense for the owners of the Speisekammer restaurant business to be a regular corporation (a C-corporation) when they first opened for business?
Sign Up Forgot Password?