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Adam M.
CPA at KPMG
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Finance
TutorMe
Question:

What is the risk return relationship in investing?

Adam M.
Answer:

The risk return relationship in investing is that the more risk you take on, the greater the potential return over the long term.

Accounting
TutorMe
Question:

When does operating leverage exist?

Adam M.
Answer:

Operating Leverage exists when small percentage changes in revenue produce large percentage changes in profits.

Business
TutorMe
Question:

What are the advantages of forming an LLC?

Adam M.
Answer:

There are many advantages of forming an LLC. The first is the limited liability portion. It protects the owners personal assets from lawsuits against the company whereas a sole proprietorship does not. It also gives the ability to be taxed as a pass through entity, like a partnership. This means that the company is not taxed at a company level, but rather the individual is on their proportionate share of income in their individual tax return.

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