Answer:
licensing agreement
Explanation:
Based on the scenario being described within the question it can be said that this agreement is an example of a licensing agreement. This term refers to a legal contract made between two different parties in which one agrees to let the other party manufacture and sell goods that belong to the first party as well as apply the first parties brand name or trademark. Such as is happening in this scenario.
Answer:
b. $75,000
Explanation:
Since assets are $100,000 and liabilities are $175,000, the owner has a deficit to cover of $75,000 ($175,000-$100,000). The deficit will have to be recovered from the owner's stock in General Motors in order to settle the outstanding liabilities. Therefore, the owner will stand to lose the $75,000.
Answer:
13,384.62 shares
Explanation:
Current number of shares = $435,000 / $13
Current number of shares = 33461.53846154
Current number of shares = 33,461.54 shares
Stocks outstanding after the reverse stock split = (33,461.54 shares / 5)*2 = 13384.616 = 13,384.62 shares.
So, 13,384.62 shares of stock will be outstanding if the firm does a reverse stock split of 2-for-5.
B, due to management training
Answer: $7,800
Explanation:
The amount that the company needs to borrow can be found using the formula:
= Opening balance + Cash receipts - Cash to be maintained - Cash disbursement
= 44,000 + 174,000 - 25,000 - 200,800
= -$7,800
Amount to be borrowed is the shortfall of $7,800
