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Gwar [14]
3 years ago
8

How MIGHT stock issues be preferable to borrowing money for firms looking to finance operations?

Social Studies
2 answers:
miv72 [106K]3 years ago
8 0

Answer:

you may need money to restock

Explanation:

drek231 [11]3 years ago
4 0

The issue of shares is a process of capitalization of a company. This works by dividing the company into a certain number of shares that will be traded in the capital market. Buyers of corporate stock will then have a stake as if they owned the company in proportion to the stock they bought. This is interesting for the company to finance itself as it is its own money. If companies sought financing from banks, interest payments would be required.

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Unfavorable labor rate variances occur when labor expenses supersede management expectations, thus causing cash flow problems, stagnation of profit, etc. It indicates that the cost of labor is way expensive than anticipated. A number of variations may cause such unfavorable variance. Some of them include staffing variance, pay premium, scheduling problem, etc. Identification of the cause can help to prevent their impact and or limit their impact.

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