Answer: b. $250,000
Explanation:
The value assigned to the Equipment from the lump sum will be the proportionate value of the Equipment from the total market value.
Total Market Value = 300,000 + 600,000 + 300,000
= $1,200,000
Equipment = (300,000 / 1,200,000) * 1,000,000
= $250,000
Insufficient funds to operate a business normally.
Undercapitalization refers to the problem of insufficient funds to operate a business normally.
<h3>What is undercapitalization?</h3>
When a business lacks the money necessary to carry out routine operations and make creditor payments, undercapitalization occurs. This may happen if a company's cash flow is insufficient or if it is unable to obtain financing through debt or equity.
Additionally, undercapitalized businesses are more likely to favor high-cost capital sources like short-term loans over low-cost alternatives like equity or long-term debt. Investors should exercise caution if a company is undercapitalized since the likelihood of bankruptcy rises when a company is unable to pay its debts in full.
Learn more about undercapitalization here:
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Answer:
the answer is C hope this helps
Sharon and two kids makes 3 people total with both kids being under 18, the poverty level from the table is $20,231
She gets $1000 a month for her kids. 1000 x 12 months = $12,000 per year
12,000 + her annual salary = 12,000 + 16,000 = $28,000 per year.
28,000 is greater than 20,231 so she is not living in poverty.
The answer is no
Answer: Shareholder theory
Explanation: As per the shareholder theory, the manager focuses all his or her efforts on the profit maximization of the shareholders of the company. A manager following shareholder theory will not be much concerned about the other stakeholders of the organisation. The benefit to shareholders could be provided either by increase in share price or as heavy distribution of dividends.
Hence, the correct option is D.
