Answer:
A) True
Explanation:
The GAAP doesn't allow corporations to record any income or loss from investments in its own stock (repurchase and reissuing) since transactions involving the owners of the corporation cannot result in profit or losses. Shareholders are the owners of the corporation and it cannot make a profit or loss by selling to itself.
Reissuing or repurchasing of stock only affects the balance sheet, like all transaction involving stocks.
Answer:
I partially agree with the stament
Explanation:
Despite the economics establishes some theories based in people, companies and governments behavior, we can fine multiple examples where the situation is not totally adjusted to the theory. As an example, when we talk about the supply and demand theory, we suppose that if the price of a product rises, the demand is lower; even when this consumption may be true, there are people who buy this named product no matter the price rises.
We need to see the economist as a theory that defines most of the situations, in the same way it gives the general and specific lines for the development of the most efficient processes and behavior about a determined situation. We can use economics as a way to analyze a situation and take an action trying to have the best result.
In the long run, the cost of capital for nonequity funding is generally LESS THAN that of equity investment.
Companies outsource to save costs or improve the value of their goods. There are several options when deciding whether to outsource a business' operations or production.
The use of outsourcing has increased as a way for businesses to cut expenses and concentrate on what they do best. A business precise known as outsourcing involves a corporation hiring a third party to carry out duties, manage operations, or offer services on their behalf.
Reduce and manage operating expenses. Enhance the company's focus. liberate internal resources for fresh endeavors. Increase output for some time-consuming tasks for which the organization may lack the resources.
The finest examples of outsourcing include website creation, office and warehouse cleaning, and advertising.
To learn more about outsourcing
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