A public company can issue common stock to the shareholders of acquisition targets, which they can then sell for cash. This approach is also possible for private companies, but the recipients of those shares will have a much more difficult time selling their shares.
Multiply the number of shares issued by the price per share. Doing this calculation gives you the amount of cash raised by the sale of the stock. For example, if the company issues 100 shares at $10 per share, the result is $1,000 of additional capital raised from stock issuances.
Answer: The correct answer is "4. when a third party is injured by an economic activity".
Explanation: A negative externality is when a third party is injured by an economic activity.
Negative externality refers to all kinds of harmful effects on society, generated by production or consumption activities, which are not present in its costs. Negative externalities occur when the action taken in our activities as a company, individual or family causes harmful side effects to third parties. Such effects are not incorporated in all costs. Since the highlighted negative effects are not present in the price of production or of the profit when consuming.
Answer: The correct answer is "B. Are necessary to adjust the Inventory account to the actual inventory available."
Explanation: Physical counts of inventory are necessary to adjust the Inventory account to the actual inventory available.
Physical inventory counts are generally performed at the end of an accounting period to adjust the accounting balance to the actual physical amount of inventory as it may differ due to missing, lost, stolen, decreased, etc.
Answer:
The correct answer is option D.
Explanation:
The income and interest rates are inversely or negatively related in the goods market.
An increase in interest rate would lead to increase in the cost of borrowing.As a result the capital investment will fall. This would further contribute in a decline in the production. This ultimately causes income level to decline.
In the money market though equilibrium levels of income and interest rate are positively related.
The equilibrium in the money market is determined by the intersection of demand for money curve and supply of money curve.
The demand for money depends on transactionary and precautionary motives. When there is an increase in income, the transactionary demand for money will increase as people will spend more. The increase in demand would cause the interest rate to rise.
In this way, income and interest rate arepositively related in the money market.
Answer:
Here the variable cost can be computed using the following formula:
Variable cost = (Sales commissions + Shipping expense + Miscellaneous selling expenses) ×Sales
Variable cost = (4% + 1% + 3/4%) x $500,000 = $28,750
Fixed cost = Sales manager's salary + Advertising expense + Miscellaneous selling expenses
= $30,000 + $25,000 + $2,100
= $57,100
<em>Total selling expense budget = Variable cost + Fixed cost</em>
<em>= $28,750 + $57,100 </em>
<em>= $85,850</em>
