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Papessa [141]
3 years ago
13

When a company needs funds to finance the expansion of its operations, which of the following is not an advantage of issuing bon

ds rather than issuing stock? Question 1 options: Stockholders remain in control as bondholders cannot vote or share in the company's earnings. Interest expense is tax deductible but dividends are not. Bonds can usually be issued at a low interest rate and the proceeds can be invested to earn a higher rate. The dates for the interest and maturity payments are fixed.
Business
1 answer:
rosijanka [135]3 years ago
7 0

Answer:

The dates for the interest and maturity payments are fixed.

Explanation:

When a company issues bonds instead of stock, one of the disadvantages of doing so is that they have to pay the coupons or the full face value of the bonds at specific dates. Either they pay coupons annually or semiannually,  and the face value is paid at maturity.

Since the dates are set beforehand, the company has to have the funds for these payments set aside. Instead, if the company would have issued stock, it would have greater freedom in deciding when and how much it should pay as dividends.

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Walk Like You Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.67 per unit of output. Th
yarga [219]

Answer:

Actual cost per unit  = $2.13

Explanation:

The spending variance for equipment and supplies can be calculated as below:

Spending variance = Actual spending - Standard Spending, or:

- 9,604 = Actual spending - Standard cost per unit x Budgeted quantity

- 9,604 = Actual spending - 2.67 x 19,200

Solve the equation we get Actual spending = 41,660.

The actual cost per unit for supplies is calculated as below:

Actual cost per unit = Actual spending/Actual production unit

                                  = 41,660/19,600 = 2.13

6 0
3 years ago
What were joint-stock companies and monopoly companies, and how did they contribute to increased trade and exploration?
Irina-Kira [14]

Answer:

Nowadays, a joint stock company is simply a corporation whose stockholders can buy or sell the company's stocks. But 4 centuries ago, joint stock companies were very different.

Joint stock companies were used by the British Empire to set colonies around the world, e.g. the Virginia Company was chartered rights to establish and exploit colonies in British territories, which are now the US.

A joint stock company was named that way because stocks of the company were sold to rich people in England that were willing to risk money in the colonies. E.g. Jameston was founded and basically owned by the Virginia Company. Joint stock companies were vital for the colonization processes of the British Empire.

The King of England could also establish chartered companies which basically had a monopoly over the trade of certain areas, e.g. the East India Company was probably one of the most famous of them and the most powerful and wealthy.

Some chartered companies were even responsible for paying the salaries and expenses of the British government officials in foreign countries. The East India Company basically ruled over all India and had its own private army.

5 0
3 years ago
6. Explain how liabilities of an LLC (taxed as a partnership) or an S corporation affect the amount of tax losses from the entit
Natasha_Volkova [10]

Answer:

LLC liabilities are included as part of member's tax basis while S corporation liabilities are not.

Tax rules favors LLCs.

Explanation:

LLC liabilities are included as part of a member's tax basis while S corporation liabilities are not included in an S corporation shareholder's tax basis other than loans from the shareholders.

This distinction is important because the amount of loss a member or shareholder may deduct is limited to his or her tax basis in either his or her LLC interest or shares. Thus in this particular regard Tax rules favors LLCs.

7 0
3 years ago
Yesenia, the new university course scheduling manager, is struggling with adjustments to the fall schedule. she is trying to det
just olya [345]

Yesenia is struggling with the marketing function of supply chain management as it is responsible for the flow of which the falls in the services and goods. It is also responsible in the movement in which it flows. It could be described above as the flow of movement with the schedule and the students are not arranged, making her to struggle with the problem.

6 0
3 years ago
Read 2 more answers
If a firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from :______
tigry1 [53]

Answer:

b. rising interest rates.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.

Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium.

Generally, if a business firm has invested in corporate bonds, it may engage in a financial futures contract in order to protect itself from rising interest rates.

3 0
2 years ago
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