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3 years ago

An entrepreneur risks _______ in return for financial gain.

1 answer:

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I think what would fill that blank space would be failure due to the fact that something with his business may have gone wrong or a wrong transaction was made. But sometimes these things can actually be a major plus for them without them even realizing before they made the choice.

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Arena Corp. leased equipment from Bolton Corp. and correctly classified the lease as a finance lease. The present value of the m

nadya68 [22]

Answer:

$1,000,000

Explanation:

The Amount to be reported as lease liability must <em>depict </em>the present value of future cash outflows required to be paid as the entity enjoys its <em>right to use the asset</em>.

Thus, the present value of the minimum lease payments at lease inception was $1,000,000 represents the amount of lease liability.

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3 years ago

An option trader buys 1 ABC April 25 put. A few months later, the trader exercises the option. The trader's net sales proceeds e

Lina20 [59]

Answer:

[C] Strike price minus the premium

Explanation:

A put buyer refers to the one who purchases a right (and not the obligation) to sell(put) the underlying asset at a pre determined strike price/exercise price at a future date.

A put buyer is under no obligation to exercise his right of selling the underlying asset. He will exercise his right only when his strike price is greater than the current market price upon expiry of the contract.

Put Buyer's profit is expressed as;

= Strike price - Option premium paid - Current market price upon expiry

Thus, his NET sales proceeds are equal to his Strike Price as reduced by Option premium paid.

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3 years ago

On January 2, 2009, L Co. issued at par $20,000 of 4% bonds convertible in total into 1,000 shares of L's common stock. No bonds

MrRissso [65]

Answer:

The correct answer is $1.2 per share.

Explanation:

According to the scenario, the computation of the given data are as follows:

Interest expense of Bonds = $20,000 × 4% = $800

Now, Interest expense of Bond, After tax = $800 × ( 1 - 50%) = $800 × 0.50

= $400

So, we can calculate the diluted earning by using following formula:

Diluted Earning = (Net income + Interest expense after tax) ÷ Total outstanding shares outstanding

Where, Total outstanding shares = 1,000 shares + 1,000 shares = 2,000 shares

By putting the value, we get

Diluted earning = ($2000 + $400 ) ÷ 2,000

= $1.2 per share

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2 years ago

Customer Information Programs (CIPs) use several examples to define a person opening a new account. In which scenario should the

xz_007 [3.2K]

Answer:

Option (D) is the right answer.

Explanation:

According to the scenario, the most appropriate answer is option ( D) because Stanley smith is a customer of the bank as he has a checking account in the bank.

While the other options are wrong because of the following reasons:

Option (A) is incorrect because the company lucky licks Inc. is the customer of the bank, not any person.

Option (B) is incorrect because Cara is not the customer of the bank as she only uses the bank's ATM.

Option (C) is incorrect because Herman is not the customer of the bank as he only cashes his checks in the bank.

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3 years ago

Which of the following statements is true of the behavior of total variable costs, within the relevant range? A. They will inc

grandymaker [24]

Answer:

They will decrease as production decreases

Explanation:

Total Variable cost is sum of all the cost incurred in production of total units of goods produced. It is directly proportional to the number of units of goods produced. It helps to analyze cost structure of goods and then decide on pricing strategy of the goods. Some of the examples of variable cost can be packaging cost, raw material’s cost.

Mathematically it can be defined as

Total variable cost = Total units of goods produced * variable cost for one unit of good produced

Hence from the given option They will decrease as production decreases as the number of units of goods produced will decrease and hence lesser raw material and packaging will be required to produce the goods.

7 0

3 years ago