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3 years ago

List any 2 merits and demerits of a company

Business

1 answer:

egoroff_w [7]3 years ago

3 0

Answer:

Merits

• limited liability

• Perpetual existence

Demerits

•Company mismanagement

•Lack of secrecy

Explanation:

Merits

° limited liability. The liabilities of the shareholders are limited to the value of investment they have in the company. This means that should the company becomes insolvent, the shareholders will only loose their investment in the firm and not their personal properties.

°Perpetual existence. This is based on the principle of separate legal entity , which means that the death of any shareholder or director would not in any way affect the existence of the company.

Demerits

° Company Mismanagement . One of the demerits of company is Mismanagement. The directors sometimes mismanage company's fund for their personal and selfish benefits which oftentimes throw the company into debt.

° Lack of secrecy. There is no secrecy in company as annual reports are given to the shareholders hence enable the competitors know it's performance and also provide company statements to registrar of companies.

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Tin Company and Aluminum Company reported the following information in their financial statements, prior to their merger: Tin Co

lilavasa [31]

Answer:

3.61

Explanation:

The data in the question are merged together and they are first separated before answering the question as follows:

Tin Company Aluminum Company

$ millions Sales COGS Inventories Sales COGS Inventories

2019 $42,750 $40,775 $10,005 $66,420 $56,175 $25,350

2018 41,250 29,960 12,660 69,150 42,700 26,950

Answer is as follows:

Tin Company's average inventory = ($10,005 + $12,600) ÷ 2 = $11,302.50

Tin Company's cost of goods sold (COGS) in 2019 = $40,775

Tin Company's 2019 inventory turnover = COGS ÷ Average inventory = $40,775 ÷ $11,302.50 = 3.61

6 0

4 years ago

Which of the following is true of normal costing? a.Actual direct labor cost is traced to products, but estimated direct materia

KengaRu [80]

<u>C) </u><u>Actual direct materials and direct labor costs are traced to products, but estimated overhead costs are assigned using predetermined rates.</u>

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<h3><u>What Are the Normal Costs?</u></h3>

The cost of a product is determined using standard costing. This method includes a standard overhead rate and actual direct costs applied to a product. It includes the actual cost of labor, materials, and a standard overhead rate that is calculated based on the product's actual consumption of the allocation base in question (such as direct labor hours or machine time).

You can prorate the difference between the cost of goods sold and inventory if there is a discrepancy between the standard overhead cost and the actual overhead cost, or you can charge the difference to the cost of goods sold (for lesser discrepancies).

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Learn more about the costs of the product with the help of the given link:

brainly.com/question/15506611?referrer=searchResults

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2 years ago

The principal advisor to the secretary of the army regarding information technology matters is:

77julia77 [94]

The principal advisor to the secretary of the army regarding information technology matters is: CIO/G6.

CIO stands for Chief Information Officer. The CIO reports to the Secretary of the Army as CIO: sets strategic direction and objectives, manages IT infrastructure, ensures Compliance of IT security . But he/she also reports to the Chief of Staff of the Army as G-6: develops and executes the plan for the Global Enterprise Network , implement Army information assurance...

3 0

3 years ago

Read 2 more answers

Ezra runs a gyro stall at the local farmers' market. He would like to expand and open his own shop downtown. He has made the cha

Kaylis [27]

Answer: Economic choices result in trade-offs.

Explanation:

The chart simply purports to show that when making economic decisions, you will have to accept trade-offs because resources are not infinite.

For instance, in order to expand, you will need to take on more financial risk. In that same vein, in order to serve more people, you will have to divide time between two stalls and might end up closing a stall.

Trade-offs simply have to be made.

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3 years ago

Your portfolio has a beta of 1.75. The portfolio consists of 17 percent U.S. Treasury bills, 31 percent Stock A, and 52 percent

earnstyle [38]

Answer: 2.77

Explanation:

Portfolio Beta is the Weighted Average Beta of all the individual stocks in a portfolio.

Seeing as the other betas and proportions are given, we can plug this into a formula to find out the beta of stock B.

In case you do not see a beta for the U.S. Treasury bills that's fine because beta is a measure of risk and U.S. Treasury bills have NONE so that means that their better is 0.

And if you are wondering what the beta of stock A is, the answer is 1 because that is the beta of the overall market by definition.

Creating a formula therefore we have,

1.75 = 0.17(0) + 0.31(1) + 0.52x

0.52x = 1.75 - 0.31

0.52x = 1.44

x = 2.76923076923

x = 2.77 (2dp)

2.77 is the beta of Stock B.

5 0

3 years ago

Read 2 more answers