what factor should be considered when comparing the net income figure of partnership to that of a corporation of similar size?
Answers
Explanation:
The most obvious, easily identifiable and broad numbers that affect your profit margin are your net profits, your sales earnings, and your merchandise costs. On your income statement, look at net revenues and cost of goods sold for a very general view of these major variables.
Answer:
Factor described below:
Explanation:
Following Factors should be considered as:
1. Nature of Business- It refers to that business belong to manufacturing or trading business. In manufacturing business, requirement of working capital is high compared to trading business.
If partnership business is trading business or company is in manufacturing business, net income should be differ from each other
2. Scale of operation- Scale of operation is also factor which influence income. if large scale operation flow of money is low which affect income of business.
3. Legal Aspect- Tax should impose high on company as compared to partnership.
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