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MrRissso [65]
3 years ago
5

Which of the following is generally NOT true and an advantage of going public? a. Facilitates stockholder diversification. b. Ma

kes it easier to obtain new equity capital. c. Makes it easier for owner-managers to engage in profitable self-dealings. d. Establishes a market value for the firm. e. Increases the liquidity of the firm's stock.
Business
1 answer:
mrs_skeptik [129]3 years ago
7 0

Answer:

c.

Explanation:

Based on the answer choices provided it can be said that the option that is not true and an advantage would be that going public Makes it easier for owner-managers to engage in profitable self-dealings. Self dealings involves a deal in which the trustee/corporate official acts more in their own self interest as opposed to the interest of the beneficiary. This would be extremely difficult and not an advantage if the company decides to go public due to them being watched and scrutinized by the public eye. Therefore an action like this would end up badly hurting the company.

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ABC, Inc. produces a product that has a variable cost of $2.50 per unit. The company's fixed costs are $30,000. The product is s
Alex777 [14]

Answer:

The amount of sales that will be necessary to earn the desired profit is 16000 units

Explanation:

To get the amount of sales to earn $10000, we make the following equation.

Profit =Sales -variable cost-fixed cost

Profit=10000

Sales=$5.00x

Variable cost= $2.50x

Fixed cost=$30,000

Replacing,

10000=5x-2.5x-30000

10000+30000=2.5x

x=40000/2.5

x=16000

5 0
3 years ago
A string or rope will break apart if it is placed under too much tensile stress. Thicker ropes can withstand more tension withou
kifflom [539]

Answer:

a. radius = 0.0006m = 0.6mm and length =0.393m = 393mm

b. frequency =377.86Hz

Explanation:

Given:

mass of steel= 4g = 0.004kg

density of steel = 7890kg/m3

tensile stress of steel 7.0x10⁸

tension load =900N

from the density, we will calculate for the Volume of the steel string

density = mass/volume

volume = mass/density = 0.004/7890 = 5.07 x 10⁻⁷ m³

from the tensile stress will can get the maximum base Area of the string ,

tensile stress = load/area =

7x10⁸ = 900/A

A = 900/7x10⁸ = 1.29x10⁻⁶ m²

Area = πr²

area/pi = 4.105x10-7

radius = 0.0006m = 0.6mm

volume = Area x length

length = vol/area =(5.07 x 10⁻⁷ m³)/1.29x10⁻⁶ m² = 0.393m

b. the highest possible frequency is given by:

F = \frac{\sqrt{\frac{T}{m/L} }}{2L}

where T= tension, m=mass, L=length

F = \frac{\sqrt{\frac{900}{0.004kg/0.393m} }}{2*0.393m}

= 297.04/0.786

frequency =377.86Hz

4 0
3 years ago
What is goodwill in a business sale and why is it amortized in the business financial statements
astra-53 [7]

Answer:

See below

Explanation:

Goodwill arises when is a business is acquired as a going concern. It is an intangible asset of a business. Goodwill represents the value of a company's customer base, its location, any patents, and the brand name. It consists of the value of suppliers, customers, and employee relationships that facilitates the smooth running of the business.

The value of goodwill is the difference between the purchase price and the net cost of its tangible and other intangible assets of a business. Amortization of goodwill means spreading the cost of goodwill to several financial years.

Goodwill is amortized because the business benefits from the goodwill for many years.  In other words, the expenditure on goodwill will profit the company in more than one financial year. As per the matching principle, expenses and incomes should be recognized in the period they occur. As benefits will be enjoyed in many years, the expenses should also be spread in similar years.

7 0
3 years ago
Puffy's Pastries generates five cents of net income for every $1 in equity. Thus, Puffy's has _______ of 5 percent.
kap26 [50]

Answer: return on equity

Explanation:

The return on equity is simply a measure of how profitable a business will be when it's being compared to its equity. Return on equity is the net income divided by the equity. It can also be gotten when liabilities is deducted from assets.

In the above analysis, return on equity equals 5% because 100 cents make 1 dollar. Therefore, 5/100 × 100 gives 5%.

5 0
2 years ago
Which of the following is an example of successive approximation
nadya68 [22]
Giving positive reinforcement when a student comes close to what you wanted 
5 0
3 years ago
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