Domenico Is a Tradesman Who Works as an Independent Contractor

question 46

Multiple Choice

Domenico is a tradesman who works as an independent contractor.When the economy went into a recession and new construction projects dried up, he found it impossible to make ends meet.As a result, he has stopped meeting his debts as they fell due.Which of the following statements is TRUE?

• A)Domenico is already bankrupt.
• B)Because he is an individual, rather than a corporation, Domenico may be put into bankruptcy through the process of assignment but not through a creditor's application for a bankruptcy order.
• C)Domenico's failure to pay his debts as they fall due constitutes an act of bankruptcy.
• D)A court will issue a receiving order only if Domenico enters bankruptcy through assignment.
• E)Domenico is not insolvent.

Calculate the contribution margin per unit and per composite unit and recognize its role in break-even analysis.

Determine the number of units required to break even or achieve a target profit, incorporating sales mix in calculations.

Analyze the effects of changes in fixed and variable costs on the break-even point and overall financial performance.

Comprehend the concept of margin of safety, both in dollar terms and as a percentage of sales, and its importance in measuring financial risk.

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Definitions:

Communal Interpersonal Skills

Abilities related to effectively engaging, interacting with, and contributing to the welfare of a community or group.

Fortune 500

An annual list that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years.

CEO Positions

The highest-ranking executive roles in an organization, responsible for major corporate decisions and management.

Masculine Manner

Exhibiting qualities traditionally associated with male behavior, often emphasizing traits like strength, assertiveness, and dominance.