AFN has negative and positive sides. The correct statement is A negative AFN indicates that retained earnings and spontaneous liabilities are far more than sufficient to finance the additional assets needed.
- AFN is known as Projected increase in assets – spontaneous increase in liabilities – any increase in retained earnings.
When the AFN value is negative, it means the action or project that is underwork will bring about extra income for the company, which can be invested in another place.
Additional funds needed (AFN) is known as financial term used when a business intends to widen its operations.
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Answer:
A) Because Joe and Mike work for un-affiliated broker/dealers, they are not permitted to share or split commissions, making this arrangement un-acceptable.
Explanation:
Even though Joe and Mike are friends and know each other for a long time, in the real world where money has an almost divine status, they must follow the rules. Commissions can only be split between agents that work for the same broker-dealer firm and are registered to work in the same state.
Since Joe and Mike work for unaffiliated broker-dealers, they cannot share clients or split commissions. Following the rules will not only help them professionally, but probably will help their friendship.