Sean,a Sole Proprietor,is Engaged in a Service Business and Uses

question 4

Essay

Sean,a sole proprietor,is engaged in a service business and uses the cash basis of accounting.In the current year,Sean incorporates his business by forming Aqua Corporation.In exchange for all of its stock,Aqua receives: assets (basis of $400,000 and fair market value of $2 million),trade accounts payable of $110,000,and loan due to a bank of $390,000.The proceeds from the bank loan were used by Sean to provide operating funds for the business.Aqua Corporation assumes all of the liabilities transferred to it.

Explain the importance of encoding strategies, such as chunking and rehearsal, in memory retention.

Recognize modern perspectives on memory models and the distinctions between short-term, working, and long-term memory.

Understand the definition and scope of marketing and its role in society.

Identify different utilities (place, time, form, ownership) created by marketing activities.

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Definitions:

Total Variable

Expenses that change in proportion to the activity of a business, such as costs of goods sold, which vary with the level of production or sales volume.

Average Variable Cost

The variable costs of production (costs that change with output level) divided by the quantity of output, indicating the average variable cost per unit.

Producing Purses

Producing purses involves the manufacturing and assembling of various materials to create handbags and similar accessories.

Average Fixed Cost

The sum of all production fixed costs divided by the number of units produced.