Under the Best efforts method, the underwriter sells as many shares as possible but may or may not sell all of the new shares.
The best efforts method is used in the oil and gas industry to account for certain operating expenses sells as many shares as possible. Under the successful efforts method, a company only capitalizes those costs associated with the location of new oil and gas reserves when those reserves have been found.
The term best efforts refers to an agreement made by a service provider to do whatever it takes to fulfill the requirements of a contract. In finance, an underwriter makes a best efforts or good faith promise to the issuer to sell as much of their securities offering as possible. While the two parties come to an agreement for the sale of some securities, the underwriter doesn't guarantee to sell them all.
- Best efforts is a term for a commitment from an underwriter to make their best effort to sell as much as possible of a securities offering.
- It is also a general service agreement term used in place of a firm deliverable commitment.
- The opposite is a firm commitment or bought deal, in which the underwriter buys all shares or debt and has to sell it all to make money.
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Answer:
B. Leary's total stockholders' equity decreased $115,000.
Explanation:
When a company purchases its previously issued stocks, this is called Treasury Stocks. These becomes stocks issued but not part of the outstanding stocks and are not included in the computation of Earnings Per Share. When Treasury Stock is presented in the Stockholder's Section of the Balance Sheet, this is deducted from the total Stockholder's Equity, notwithstanding the par value of the common stock.
Answer:
The correct answer is C)Opening the mail and recording entries in the sales journal.
Explanation:
It is the correct answer because both activities can be done sitting on the desk, using the same computer. All the other answers refer to activity pairs that would require physical activity, and this would reduce efficiency. For example, making journal records and delivering inventory are extremely disjointed activities, it is like being an accountant and a delivery person at the same job.
Answer:
TAKT time: 840 seconds
maximum output: 315 coolers.
Explanation:
The takt time refers to matching the production pace with the demand
To produce 30 coolers per 7-hours day we need an outpot of:
7 hours x 60 minutes x 60 seconds = 25,200
output of 30 coolers
takt: 25,200 / 30 = 840 seconds
producing a cooler every 840 seconds is the takt time.
Maximum output:
If the company does several cooler in parallel it will have a bottle neck in the longest individual task so, this time determinates the maximum output.
25,200 second of working time available
80 second longest task to complete a cooler:
25,200 / 80 = 315 coolers.
A policy that seeks to encourage citizens to only by products produced domestically is a policy of "protective tariffs". This policy does not necessarily create economic growth, and can in fact be harmful to economies depending on the time when they are implemented.
