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3 years ago

Select the correct answer.

Business

1 answer:

natali 33 [55]3 years ago

8 0

Answer:

OB. the owner owns only some of the units

Explanation:

A franchise is a business model where a franchisee acquires a license from the franchisor to operate a similar business to the franchisor. The franchisor owns the popular business and authorities the franchisee to establish an independent but outlet. The franchisee acquires rights to the business name, products, services, logo, brand name, and systems from the franchisor.

A franchisee business operates as a branch of the franchisor business. The only difference is that a franchisee is owned and managed by an independent investor. In the chain store, all the branches are owned by the same entity or investor. The franchisor does not own all the outlets that operate with his brand name.

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2. Which of the following mcans separating different types of people into groups and treating

Julli [10]

Answer:

it is called discrimination

5 0

3 years ago

What schedule would any gains or losses from virtual currency carry to?

astraxan [27]

The schedule that any gains or losses from virtual currency would carry to is schedule D.

According to the question we are to discuss the type of schedule needed in case of any gains or losses from virtual currency .

As a result of this we can see that schedule D which is useful in reporting a capital gains and losses on taxes as well as loss in cryptocurrency by buying and selling is the best schedule.

Therefore, schedule D serves as schedule that any gains or losses from virtual currency would carry to.

Learn more about schedule at:

brainly.com/question/1306721

6 0

2 years ago

T/F If firms from country A undertake $20 billion of FDI in firms from country B in year 1, and another $20 billion in year 2, t

pogonyaev

Answer: False

Explanation:

In both the first and second years, firms in country A undertook FDI projects of $20 billion in country B. This means that Country A had FDI outflows of $20 billion in those two years not inflows. Inflows are what happens when the FDI is coming into the country.

Country B on the other hand, was receiving money from country A. Country B therefore had FDI inflows of $20 billion in each of the two years and not outflows like Country A had.

4 0

3 years ago

A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 7 years at $1

Dafna1 [17]

Answer:

YTM = 6.51%

YTC = 6.40%

Explanation:

We need to solve using excel goal seek or bond formulas to generate the yield (interest rate) which matches the future couponb and maturity payment with the current selling price of the bond:

Present value of the coupon

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 40.000 (1,000 x 8% / 2 payment per year)

time 28 (14 years x 2 payment per year)

rate 0.032529972 (generate using goal seek tool)

$40 \times \frac{1-(1+0.0325299719911398)^{-28} }{0.0325299719911398} = PV\\$

PV $727.8688

Pv of the maturity (lump sum)

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 28.00

rate 0.032529972

$\frac{1000}{(1 + 0.0325299719911398)^{28} } = PV$

PV 408.06

PV c $727.8688

PV m $408.0612

Total $1,135.9300

As this is a semiannual rate we multiply it by 2

0.032529972 x 2 = 0.065059944 = 6.51%

We repeat the procedure with changing the time and end-value to adjust for the callabe conditions:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 40.000

time 14 (7 years x 2 payment per year)

rate 0.032015131

$40 \times \frac{1-(1+0.0320151313225188)^{-14} }{0.0320151313225188} = PV\\$

PV $445.6984

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,073.00 (call price)

time 14.00

rate 0.032015131

$\frac{1073}{(1 + 0.0320151313225188)^{14} } = PV$

PV 690.23

PV c $445.6984

PV m $690.2316

Total $1,135.9300

Againg his will be a semiannual rate so we multiply by two:

0.032015131 x 2 = 0.064030263 = 6.40%

5 0

3 years ago

XYZ, CPA, has been engaged to examine the financial statements of ABC Corporation for the year ended December 31, 2015. During t

Ivahew [28]

Answer:

a. Analytical review of loan agreement.

Inquiry from management about the loans and its covenants.

Observing the management behavior towards covenants.

Inspecting the effects of each covenant on business activities.

b. According to IAS 24, related party transactions the loan from president should be disclosed.

Explanation:

Loans are a source of funding to a business. Many organizations prefers high debt funding as it is a cheap source of finance. On the other hand high debt companies are considered as risky. When an auditor analyses the loan covenants he must ensure that he reads the complete agreement and analyses the effects that each covenant has on the company's performance. Loan covenants are always considered as flagged as this is an important area which requires detailed audit. In the given scenario the loans are taken against company's inventory and receivable accounts which is a threat to company's working capital. There are covenants imposed not to distribute any dividend to shareholders. These will create a liquidity position for a company if the loan is not paid on time and company will not have sufficient amount of working capital to fund its routine expenses and business operations.

b. IAS 24 provides detailed guidance on discloses for transaction involving related party. The president of a company has provided loan to the company this should be disclosed in the notes. The transaction should be in the arms length and disclosures should be made for every transaction.

5 0

3 years ago