Under firm-commitment underwriting, the underwriter bears the entire risk that the shares will not be sold to the public at the specified offering price.
What is Underwriter?
Any person who assesses and takes on another party's risk in exchange for payment—which frequently comes in the form of a commission, premium, spread, or interest—is an underwriter. While underwriters work for insurance firms, agents and brokers represent both consumers and insurance companies. The mortgage, insurance, equity, and some prevalent forms of debt security trading are just a few of the financial industries where underwriters play a crucial part. Sometimes referred to as a book runner, a lead underwriter holds this position.
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Answer:
$54,000
Explanation:
The computation of the segment margin for the West Division is shown below:
First we have to find the contribution margin which is as follows
= Number of units sold × (Selling price per unit - variable cost per unit)
= 36,000 × ($6 - $3)
= 36,000 × $3
= $108,000
Now the segment margin is
= Contribution margin - direct fixed cost
= $108,000 - $54,000
= $54,000
Genetech corp. has invested heavily to develop a patented new product. Genentech wants to achieve a rapid return on its investment. it probably should set a profit maximization.
Profit maximization in economics refers to the short- or long-term process through which a corporation chooses the price, input, and output levels that result in the largest profit. The firm is typically modelled as maximizing profit in neoclassical economics, which is currently the dominant approach to microeconomics.
Economic and social well-being are indirectly influenced by the profit maximization idea. A company uses and allocates resources effectively when it is profitable, and this results in payments for capital, fixed assets, labour, and organization. Economic and social welfare is achieved in this way.
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Answer:
(b) Contractionary fiscal policy.
Explanation:
Correct word for the given statement is contractionary fiscal policy.
Contractionary fiscal policy is a type of monetary approach that includes expanding charges, diminishing government uses or both so as to battle inflationary weights.
Because of an expansion in charges, family units have less transfer salary to spend. Lower transfer pay diminishes utilization.
Answer:
Cash Basis and Accrual Basis
Explanation:
We be using the Cash Basis and Accrual Basis method to explain this
If we are going to use cash basis accounting system
the service revenue will = $105,000 while
Pool Expenses will = $80,000
If we are going to use accrual basis accounting system
the service revenue = $130,000 while
Pool Expenses = $85,000
