Answer: StatusB B. Have the customer sign a statement that he understands the risks involved prior to executing the order
Explanation:
The options to the question are:
StatusA A. Send a prospectus to the customer
StatusB B. Have the customer sign a statement that he understands the risks involved prior to executing the order
StatusC C. Have the branch manager approve the order and then fill the customer's order in the same manner as with any other security
StatusD D. Send the customer a Subscription Agreement to be signed before filling the order.
The correct answer is StatusB B. Have the customer sign a statement that he understands the risks involved prior to executing the order.
Under the penny stock rule of the Securities exchange commission, when a new customer is being solicited by a registered representative to purchase an over-the-counter stock non-NASDAQ, a detailed statement must be completed by the registered representative on behalf of the customer.
<span>Capital appreciation refers to A. the increased value of a stock.
However, it doesn't only refer to the stock value, but value of any asset that is increased, such as bonds, land, etc.
The term is related to an influx of money that is going to bring many benefits to the person who is the owner of such assets.</span>
Answer:
Journal Entries
Explanation:
The journal entries are as follows
1. Cash $432,000
To Bonds payable $400,000
To Premium on bond payable $32,000
(Being the issuance of the bond is recorded)
The premium on bond payable is computed below:
= $400,000 ÷ $100 × $8
= $32,000
The $8 comes from $108 - $100
2. Bond payable $400,000
Premium on bond payable $27,809
To Cash $412,000 ($400,000 × 103%)
To Gain on bond redemption $15,809 ($432,000 - $4,191 - $412,000)
(Being the retirement of the bond is recorded)
Answer:
True
Explanation:
For any organization, whether small or large in terms of capital investment, the potential benefits will occur only when all the opportunities available in the market are exploited properly.
Therefore, performance benefits of a multi organization can be obtained, only when the organization exercises the ability of exploiting all the resources available in the market, related to the organization, which are termed as parallel resources in business language.
Thus, the above stated statement is
True.
