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nalin [4]
1 year ago
9

You are analyzing the following four companies based on their debt to equity ratio. which company has the highest risk of insolv

ency? company a 2.5 company b 1.0 company c 0.9 company d 3.0
Business
1 answer:
lys-0071 [83]1 year ago
6 0

Company D company has the highest risk of insolvency.

Bankruptcy risk, or insolvency hazard, is the chance that an agency will be unable to satisfy its debt obligations. it is the opportunity for a company turning into insolvent because of its incapacity to service its debt.

There are loads of intricacies when navigating the concern listing of creditors during a liquidation system. In general, secured creditors have the very best priority observed by using precedence over unsecured lenders. The final lenders are frequently paid previous to fair shareholders.

Bad financial control and having a consistent loss of cash may be one in the biggest causes of insolvency. No longer having sufficient cash in the bank to cover monthly expenses such as payroll and hire as well as any surprising prices, can eventually land a business in hot water.

Learn more about businesses here: brainly.com/question/24448358

#SPJ4

You might be interested in
More investments can increase economic growth by _____.
tatyana61 [14]
The answer to the question more invest can increase economic growth by "Creating Jobs". It is the letter "C".

It could not be A and C since when these two happens it means the country has an unhealthy economic growth.
6 0
3 years ago
Read 2 more answers
Name a form of ownership that is represented by South African broadcasting corporation (SABC) and outline four characteristics o
TEA [102]

Answer:

State ownership

Explanation:

State ownership, or government ownership, or public ownership, is a form of ownership were the government owns or partly owns as well has control over a business with the revenue from the business or establishment being added as benefits accruable to the welfare of the public

The characteristics of a state ownership are;

1) State ownership means that the government is the owner, or part owner of the establishment, where part ownership belongs to the public

2) The main purpose of a state owned business is not to make profit, but rather to provide public welfare, that benefits the residents of the country

3) The profits from the business are entered into the treasury of the state and are used to carry out public welfare projects

4) The employees of the government are the managers of the establishment which is subject to bureaucracy, and the business is operated with a state selected board of directors

5) The government determines the manner of stability present in the business, as well as the winding up of state owned businesses that have no function

6) The state owned business is operated by the laws and policy if the business and it is therefore recognized as an autonomous body

6 0
2 years ago
Operating Costs
posledela

Operating Costs

3.Cost of actually running a business

This is a clear indication of the company's resource usage productivity.

Accounts Payable

6.Amounts of money the company owes to other companies for products

as this affect the overall short term debt, if this is lower, the better for the company.

Cash Flow

4.The movement of money in or out of a business

having a positive cash flow is good for investment and capital expenditures.

Startup Costs

2.Cost of starting up a business until it can pay for itself

these costs are most of the time unavoidable.

Gross Profit

5.Total Revenue - Cost of Goods Sold

Angel Investor

1.An investor who provides money to a business in exchange for debt or equity

however, the risk is that you might end up giving a significant controlling stake of the company to the investor.

3 0
3 years ago
An apparel manufacturing plant has estimated the variable cost to be $3.30 per unit. Fixed costs are $1,800,000 per year. Forty
erica [24]

Answer:

$15.30

Explanation:

Given that,

Fixed costs = $1,800,000 per year

Variable cost = $3.30 per unit

40% of its business is with one preferred customer.

Total units sold in a year = 150,000

Unit cost per item:

= (Fixed cost ÷ Total units sold) + Variable cost per unit

= ($1,800,000 ÷ 150,000) + $3.30

= $12 + $3.30

= $15.30

Therefore, the unit cost per item is $15.30.

4 0
3 years ago
Pam and Marian have formed a limited partnership in the state of Massachusetts. Their business does well, and as it continues to
Serga [27]

If Pam and Marian are successful in their application to New Hempshire and Connecticut, they will get a Certificate of Registration.

<h3>What is a certificate of registration?</h3>

This is a legal document that is issued by the government of an area to show that a company can operate in the area because they have met the necessary requirements.

If Pam and Marian are cleared by the Connecticut and New Hampshire states, they will get Certificates of Registration.

Find out more on Registering a business at brainly.com/question/26101756.

#SPJ12

8 0
2 years ago
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