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Answer:
specialty-store.
Explanation:
Based on the information provided within the question it seems that "The Fashion Place" is probably a specialty-store. These are stores that focus on selling a very specific category of product. Which is exactly what this store is doing by selling only clothes aimed for upper-class executive women's clothing (specialty).
Answer:
B)a deficit of $1.5 trillion
Explanation:
The computation of the government budget balance is shown below:
= Taxes - government spending
= $0.5 trillion - $2 trillion
= $1.5 trillion deficit
For computing the government budget balance, we deduct the government spending from the taxes so that the correct amount can come
All other information which is given is not relevant. Hence, ignored it
Answer:
<u>Advantages</u>
Dividends
These are payments to shareholders as a way to share the profits the company has accumulated.
This is an advantage to the issuing company because they are usually not under any obligation to pay Dividends with respect to common Equity. As a result profits can be plowed back into the company to increase profitability.
Repaid
This refers to the fact that shareholders do not have to be repaid for their investment like debt holders are. Stock Holders bought a piece of the company instead of loaning money to the company so they do not have to be paid back. This is an advantage because it frees up Cashflow for the company as well as allowing it to maintain a better credit rating due to lower debts.
Future Buy-Back
This is a clause inherent in most shares. It means that the Issuing company can choose to buy back the stock at a given time in future.
This is an Advantage because it allows the Issuing company to regain control of the company at a future date.
<u>Disadvantages</u>.
Shareholders
Shareholders are people or entities who buy shares in the Issuing company. As such, they are owners in the company and have voting rights on decisions that the company makes. This is a disadvantage because it means loss of Independence for the company who now legally have to take the opinions of shareholders into account.
Net Profit After Tax
This is money that the company has after paying off interests and then taxes. This is the money that the company retains. Having shareholders means that a company may have to pay shareholders from this amount instead of retaining all of it thereby making it at a disadvantage to the Issuing company.
One Vote per Share
This means that every shareholder has a vote for every share they hold in the company. This means that Shareholders therefore have a say in the affairs of the company. This is a disadvantage to the Issuing company because it means a loss of Independence for them when decisions need to be made.
I believe this would result to a debit to cash and a credit to common stock. This is because the transaction would result to an increase in cash (asset) and a decrease in stock (asset). A journal is a record used in accounting in which transactions are initially recorded in order of when they were undertaken.
