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11 months ago

Corporations can raise large amounts of money because:

1 answer:

5 0

Because shares of stock can be bought in tiny increments, even novice investors can take part in corporate fund-raising efforts.

<h3>What do you mean by corporations?</h3>

A corporation is a business entity whose shareholders elect a board of directors to run its affairs. The corporation, not the shareholders, is in charge of the company's activities and financial situation. a large company run by a collection of companies as a single unit: a multinational corporation. UK Broadcasting Corporation

<h3>What is the importance of corporations?</h3>

In order to create value over the long term, a corporation must conduct legal, moral, profitable, and sustainable business practises. This necessitates taking into account the stakeholders who are essential to its success (shareholders, employees, customers, suppliers, creditors, and communities), as determined. A corporation protects its owners' personal assets from liability more than any other type of entity. For instance, even if a company's assets are insufficient to cover its debts, its investors will not be held personally liable in the event of a lawsuit.

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Explain one impact on business of rising interest rates

Tanya [424]

The rising interest rates make it harder to start concrete businesses (worse loans) so an impact would be online businesses gaining popularity.

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3 years ago

A seller sold a house to a buyer allowing the buyer to take over the loan on a "subject to" basis. After 2 years, the buyer defa

lubasha [3.4K]

Answer:

A. The seller would be primarily liable.

Explanation:

Subject to basis is a form of home buying options in real estate. It is a situation where the buyer takes over existing loan of a seller and make commitment to seller to continue repaying the loan to the lender.

Though the buyer will taken over the loan from the seller and make repayment to the lender, there is no legal obligation on buyer`s part that makes him/her liable to the lender. The seller still remain liable despite the the taking over. So option A is right while B to D is wrong because it`s only the seller that is primarily liable to the lender.

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3 years ago

If fixed costs increased and variable costs per unit decreased, the break-even point would_______________.

Aleksandr-060686 [28]

Answer:

The correct option is D,cannot be determined from the data provided

Explanation:

Break-even points in units=fixed costs/contribution margin per unit

Contribution margin per unit =selling price -variable cost

In other words, from the scenario, it is clear that the numerator fixed costs has increased and also a reduction in variable cost per unit implies an increase in contribution margin per unit since a lesser variable cost is being deducted from selling price.

The impact of both increases in fixed costs and contribution margin cannot be determined except if more details is provided which will give further guidance regarding which of the two increased at a higher rate compared to the other.

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3 years ago

obinson Company had a net deferred tax liability of $34,000 at the beginning of the year, representing a net taxable temporary d

ZanzabumX [31]

Answer:

Robinson's deferred income tax expense or benefit for the current year would be $6,700

Explanation:

The computation of the deferred income tax expense or benefit for the current year is shown below:

= Deferred tax expense - adjustment of tax based on the tax rate

where,

Deferred tax expense = (Favorable temporary differences - unfavorable temporary differences) × corporate tax rate

= ($50,000 - $20,000) × 21%

= $6,300

And, the adjustment of tax equals to

= Net taxable temporary difference × (Tax rate - corporate tax rate)

= $100,000 × (34% - 21%)

= $13,000

Now put these values to the above formula

So, the value would equal to

= $6,300 - $13,000

= $6,700

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2 years ago

How much cash flow an $400 000 investment can produce?

Zanzabum

Can totally vary. Normally, it can create 1,000 dollars up to 2,000 dollars if it's a good investment.

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2 years ago