Answer:
C. Preferred stockholders will receive the entire $300,000 and they must also be paid the remaining $20,000 sometime in the future before common stockholders will receive any dividends.
Explanation:
Preferred shares have preference over the common shares in respect of dividend. Since $300,000 is paid as dividend, the entire amount has to be paid to the preferred shareholders, as the total amount payable to them as dividend = $1,000,000 * 4 *8% = $320,000, which is more than the total dividend declared.
In addition, as the preferred shares have cumulative dividend preference the shortfall in any year is to be carried forward and paid in the year in which dividends are paid and that too before any dividend is paid to the common shareholders.
Answer: True
Explanation:
As a result of the Accrual principle in accounting, transactions need to be recorded in the period that they occur in and not in the period they are paid for in.
The interest in Year 1 was incurred in year 1 and so will need to be recorded in year 1 for the period from issuance of the note to the last day of the accounting period.
This means that if the last day of the accounting period is December 31st, the interest for year 1 would have to be accrued from September to December of year 1 and recorded as year 1 interest.
Answer:
If price is less than minimum average variable cost, resulting losses will cause firms to leave the industry.
Answer:
The best choice for the United States would be a system in which everyone is covered by insurance, where a public robust option exists, but where there are also private options that can become spcialized in less essential care like comestic plastic surgery, or cosmetic dental care.
For this system to work better and to reduce the high spending in healthcare as percentage of GDP, many managerial jobs in the insurance industry should be cut, and only those that are essential should be kept.
The private options should be kept under a more rigid oversight so that they do not overcharge their users for services or prescription drugs.
Finally, the public option should be robust, insurance every person who cannot afford private insurance, and the government should make sure that it is well-funded.
Describe the current global strategy and provide evidence about how the firm’s resources and competencies support the pressures regarding costs and local responsiveness. Describe entry modes they have usually used, and whether the modes are appropriate for the given strategy is described below
Explanation:
Global Strategy’ is a shortened term that covers three areas: global, multinational and international strategies. Essentially, these three areas refer to those strategies designed to enable an organisation to achieve its objective of international expansion.
In developing ‘global strategy’, it is useful to distinguish between three forms of international expansion that arise from a company’s resources, capabilities and current international position.
Implications of the three definitions within global strategy:
International strategy: the organisation’s objectives relate primarily to the home market.
Multinational strategy: the organisation is involved in a number of markets beyond its home country. But it needs distinctive strategies for each of these markets because customer demand and, perhaps competition, are different in each country. Importantly, competitive advantage is determined separately for each country.
Global strategy: the organisation treats the world as largely one market and one source of supply with little local variation. Importantly, competitive advantage is developed largely on a global basis.
