Tara Brtek Owns and Operates the Singing Pig Food Company

question 109

Multiple Choice

Tara Brtek owns and operates the Singing Pig Food Company. Brtek makes and markets 20 different gourmet mustards, salsas, marinades, and dip mixes using her crooning pig logo. If Brtek decides to incorporate her business to make it easier to find investors, what would be her first step?

• A) elect a board of directors
• B) sell stock to her customers
• C) write the articles of incorporation
• D) hold an organizational meeting with shareholders

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Definitions:

Depreciation Estimates

Projections made regarding the decrease in value of a fixed asset over time, affecting financial statements and tax liabilities.

Residual Value

The anticipated worth of an asset upon reaching the conclusion of its serviceable life.

Double-Declining-Balance

An accelerated method of depreciation which doubles the regular depreciation amount, reducing the value of an asset more quickly in its early years.

Depreciation Expense

The orderly apportionment of a tangible asset's cost over the duration of its use.