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
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.

You might be interested in
Signal mistakenly produced 1,000 defective cell phones. The phones cost $65 each to produce. A salvage company will buy the defe
Contact [7]

Answer:

It is more profitable to continue to rework the phones and sell them.

Explanation:

Giving the following information:

Signal mistakenly produced 1,000 defective cell phones.

<u>The $65 per phone is a sunk cost. It will remain on both decisions, therefore, we will not take into account to make the decision.</u>

Sell as it is:

Income= 33*1,000= $33,000

Rework:

Costs= 88*1,000= $88,000

Sales= 144*1,000= $144,000

Total gain= $56,000

It is more profitable to continue to rework the phones and sell them.

3 0
3 years ago
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that
kumpel [21]

Answer:

interest must be paid on a periodic basis regardless of earnings

Explanation:

Businesses need funds to operate and they sometimes issue bonds to get the needed bonds.

Bonds are debt instruments that are sold to investors to get funds. Interest is also paid to the bond buyer for the tenure of the bond.

The major disadvantage of using bonds as a source of bonds from the standpoint of the issuer is that interest must be paid on a periodic basis regardless of earnings.

6 0
3 years ago
(a) When an anti-assignment clause exists in a contract, a court will not enforce it because it is against public policy.
lidiya [134]

Answer:

a. <u>FALSE</u>

b. A contract cannot forbid the assignment of the right to receive <u>funds</u> . Assignments also cannot be restricted for the transfer of <u>real estate</u> , also called a restraint against <u>alienation</u> . A contract cannot prohibit the assignment of checks or promissory notes, also called <u>negotiable instruments</u> . The right to receive <u>damages</u> in a contract for the sale of <u>goods</u> also can be assigned, even if the contract forbids it.

4 0
3 years ago
Anyone has documents about the increasing importance of global production networks in the textile and clothing industry?
svetoff [14.1K]

Answer:

The Global Textile and

Garments Industry:

The Role of Information

and Communication

Technologies (ICTs)

in Exploiting the

Value Chain

Information and Communication

Technology (ICT) has an important role

to play as developing countries adjust

to the new era. These opportunities will

derive from the ability of ICTs to open

up parts of the supply chain (other than

basic manufacturing and processing)

to developing countries. This report

presents case studies of companies that

have successfully used ICTs to move,

for example, into higher-value activities

such as design and logistics, or to

access niche markets

4 0
3 years ago
A corporation issued 5,000 shares of its $1 par value common stock in exchange for land (market value $30,000) and a building (m
olga2289 [7]

Answer:

The correct option is A,Debit Land and Building, $130,000; Credit Common Stock, $5,000; Credit Paid-in Capital in Excess of Par Value, Common Stock, $125,000.

Explanation:

The sum of the two market values of both land and building is $130,000($100,000+$30,000),which would be debited to land and building account to show that the asset has increased due to new acquisition.

In the common stock account the par value of the shares which is $5,000($1*5000) would be credited to it.

The difference between the market value of assets acquired and the common stock amount which is $125,000($130,000-$5,000) would be credited to paid in capital in excess of par account.

3 0
3 years ago
Other questions:
  • According to management guru peter drucker, "the aim of marketing is to ________."
    14·1 answer
  • If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in
    14·1 answer
  • I WILL ALWAYS MARK THE FIRST ANSWER THE BRAINLIEST
    13·2 answers
  • Sarah Wiggum would like to make a single investment and have ​$2 million at the time of her retirement in 35 years. She has foun
    14·2 answers
  • A tire manufacturer produces 400 tires valued at $20 each. Three hundred tires are sold to a tire shop, which then sells them to
    14·1 answer
  • Importance of completing client records correctly
    6·1 answer
  • What are the types of budget​
    8·1 answer
  • Which statement characterizes the perspectives of the definition of done (DoD)? Product Owners focus on the Iteration while Prod
    12·1 answer
  • 32 POINTS! Please answer QUICKLY! Giving away a product for free can be a good business practice. Why is this TRUE?
    8·2 answers
  • are shifts in aggregate demand often the result of waves of pessimism or optimism among consumers and businesses
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!