1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mrs_skeptik [129]
3 years ago
14

Marcus owns common stock in XO, an oil and energy company that is about to be liquidated. Is Marcus guaranteed to be paid in the

process of dissolution?
Business
1 answer:
sleet_krkn [62]3 years ago
4 0

Answer:

No

Explanation:

As a common stock holder, Marcus falls among the last class of stakeholders to be settled in XO's dissolution. A typical hierarchy of settlement during company dissolution is

  • Secured creditors
  • Unsecured creditors
  • Preference stock holder
  • Common stock holder

As such, as a common stock holder, Marcus will only be paid after all creditors and preference stock holders have been paid. And given that companies in liquidation are in that situation in the first place due to their inability to meet their obligations, there may not be enough resources left for common stockholders after distribution to creditors and preference stock holders.

You might be interested in
The "sticky wage" theory states that …
Umnica [9.8K]

Answer:

c. wages may stay at above-equilibrium levels for an extended period of time, thus keeping unemployment high.

Explanation:

Sticky wage theory -

According to this theory , the payment of the employees have a slow response for the change in the performance of the company or the economy .

From this theory , as the unemployment increases ,  the wages of the employed candidates tends to remain same or increases very slowly due to to decrease in the demand of the labor .

In this case , the wages are sticky - down , as they move up easily but get down with difficulty .

4 0
2 years ago
Beautiful Lawns Company estimates its doubtful accounts by aging its accounts receivable and applying percentages to various age
mr_godi [17]

Answer:

$3,000

Explanation:

Calculation to determine How much bad debts expense will Beautiful Lawns report in 2016

Using this formula

Bad debts expense=Estimated doubtful accounts -Allowance for Doubtful Accounts credit balance

Let plug in the formula

Bad debts expense=$3,600-$600

Bad debts expense=$3,000

Therefore The amount of bad debts expense that Beautiful Lawns will report in 2016 is $3,000

8 0
3 years ago
The main advantage of written channels is that they
scoray [572]

Answer:

D. all of the above

Explanation:

hope it helps

4 0
2 years ago
6. How long does it take for the average new drug to be tested and approved for
tankabanditka [31]

Answer:

3 to 5 years.....only.....

5 0
3 years ago
If net exports is negative, it must be the case that _____. rev: 04_09_2018 Multiple Choice the value of goods, services, and re
Anton [14]

Answer:

more goods are being imported than exported

Explanation:

Net export = export - import

when net export is negative it means that import exceeds import. this is known as a trade deficit

5 0
3 years ago
Other questions:
  • This is not an effective use of wikis.
    11·2 answers
  • M Corp. has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation days can
    6·1 answer
  • A few of the tools economists use to evaluate the macroeconomy are
    11·1 answer
  • Bryce Co. sales are $801,000, variable costs are $465,100, and operating income is $287,000. What is the contribution margin rat
    13·1 answer
  • All of the following statements related to recording warranty expense are true except: Multiple Choice Recording estimated warra
    8·1 answer
  • Patents are an example of which of the following?
    13·1 answer
  • Which of the following statements is true? Group of answer choices The further in the future you receive a dollar, the less it i
    13·1 answer
  • Which sentence in the passage refers to the "analysis" of a given problem?
    7·2 answers
  • 5. This is the best way to separate sugar and sand mixture.​
    10·1 answer
  • If the Market Equilibrium Wage Rate is $105.00 and FC = $1500.00: A. The firm Shuts Down and hires no workers and loses $1500.00
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!