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hram777 [196]
2 years ago
8

Many executives own shares in the companies they manage and are also in high tax brackets. When faced with the choice between de

claring dividends and repurchasing shares, managers may opt to repurchase shares as it is not a taxable event for them unless they sell their shares and with fewer shares outstanding, the stock price will likely rise. The company's investors may prefer dividend payments.
This is an example of what theory is in action?
Business
1 answer:
Archy [21]2 years ago
5 0

The above is an example of theory is in action which is difference between Dividends and Buybacks.

<h3>What is a dividend?</h3>

Dividends are leftover of a company's profit paid to shareholders. It is what is paid to those who own shares in a company at the end of the financial period.

It is to be noted that companies reward their shareholders by paying dividends or by buying back shares of stock.

Learn more about dividends here: brainly.com/question/3161471

#SPJ1

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Infomercial are _than commercials.
Oksana_A [137]
The answer is D.Shorter
5 0
2 years ago
Read 2 more answers
Which of the following is not a ratio to assess a firm's liquidity?a. Current Ratiob. Debt ratioc. Quick Ratiod. All of the abov
Mandarinka [93]

Answer:

b. Debt ratio

Explanation:

The liquidity ratio includes the current ratio, quick ratio, etc

where,  

Current ratio = Total Current assets ÷ total current liabilities

And, Quick ratio = Quick assets ÷ total current liabilities  

where,  

Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)  

These two ratios check the liquidity of the business organization whereas debt ratio shows a relationship between the total liabilities and the total assets. It checks the leverage of the firm whether it is capable to repay the borrowed amount or not

Hence, option b is correct

4 0
3 years ago
Antoine transfers property with a tax basis of $535 and a fair market value of $652 to a corporation in exchange for stock with
Dimas [21]

Answer: $438

Explanation:

Antoine's tax basis in the stock received in the exchange will be gotten as the adjusted basis of asset exchanged which will then be decreased by the liability assumed on the property that's transfered. This will be:

= $535 - $97

= $438

Therefore, Antoine's tax basis in the stock received in the exchange is $438.

8 0
2 years ago
On jan. 2, callie company received a $700 payment from a customer previously billed for services performed. the journal entry to
svp [43]

To record On Jan 2, Callie Taylor received a $700 payment from a customer formerly billed for services performed. The journal entry to record this transaction would contain a debit to the cash account and a credit to the Accounts Receivable account.

<h3>What is Journal entry?</h3>

A journal entry exists as an act of keeping or creating records of any transactions either economic or non-economic. Transactions exist listed in an accounting journal that indicates a company's debit and credit balances. The journal entry can consist of several recordings, each of which exists either a debit or a credit.

A journal entry exists as a record of the business transactions in the accounting books of a business. A properly recorded journal entry consists of the correct date, amounts to be debited and credited, an explanation of the transaction, and a unique reference number. A journal entry exists as the first step in the accounting cycle.

Hence, To record On Jan 2, Callie Taylor received a $700 payment from a customer formerly billed for services performed. The journal entry to record this transaction would contain a debit to the cash account and a credit to the Accounts Receivable account.

To learn more about Journal entry refer to:

brainly.com/question/14279491

#SPJ4

7 0
2 years ago
One of the main implications of the four-drive theory is that: employers should give all employees the same employee benefits. e
Vitek1552 [10]

Answer: Employers should offer employees enough opportunity to keep each of their drives in balance.

Explanation:

The Four-Drive Theory is a way of improving Employee motivation through more ways than just financial incentives. It is believed that all four factors are very integral in the motivation of employees and so managers would do well to implement them to get the best out of their employees.

The Four drives are, <em>Acquire and Achieve</em>, <em>Bond and Belong</em>, <em>Create and Challenge</em> and <em>Define and Defend</em>.

A key recommendation by the proponents of this theory is that Managers should not give their employees too little or too much opportunity to follow each drive but rather give them enough opportunity that they keep each drive balanced with the others.

3 0
3 years ago
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