Parat College Allocates Support Department Costs to Its Individual Schools $\quad$

question 85

Multiple Choice

Parat College allocates support department costs to its individual schools using the step-down method. Information for May 2017 follows: $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Support Departments }$
$\begin{array}{lcc}& \underline{\text { Maintenance}}& \underline{\text { Power }}\\ \text { Cost incurred } & \$ 99,000 & \$ 54,000 \\ \text { Maintenance } & \text {---- } & 10 \% \\ \text { Power } & 20 \% & \\ \text { School of Education } & 30 \% & 20 \% \\ \text { chool of Technology } & 50 \% & 70 \% \\&100\%&100\%\end{array}$ What is the amount of May 2017 support department costs allocated to the School of Education?

• A) $40,500
• B) $42,120
• C) $46,100
• D) $49,125

Understand the characteristics and liabilities associated with different forms of business organizations, specifically sole proprietorships, partnerships, and corporations.

Recognize the legal implications of the relationships between agency, principal, and third parties.

Comprehend the concept of fiduciary duties within various business relationships.

Identify the consequences of an individual's actions in a partnership or sole proprietorship on personal and business liability.

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Definitions:

Liability

The legal responsibility for one's actions or omissions, which can result in being obliged to offer compensation for harm caused.

Proxy

A proxy is an authorization given by a shareholder or other party to represent them and vote on their behalf in a corporate or other formal meeting.

Shareholders' Meeting

A gathering of a corporation's shareholders, held to discuss the company's performance, elect the board of directors, and make decisions on major company issues.

Embezzlement

The act of dishonestly withholding or misappropriating funds or assets that have been entrusted to someone's care, typically in a work or official capacity.