A commitment whereby the underwriter agrees to purchase any portion of an issue offered to existing shareholders under a rights offering that is left unsubscribed is known as a stand-by commitment.
Commitment means the consent of the backstop parties under the Backstop Rights Purchase Agreement, and purchases of all rights offering shares that exceed the Sopris Senior Note Commitment that the rights offering participants do not purchase in accordance with the rights offering.
Commitment: With firm commitment underwriting, the underwriter guarantees that the issuer will purchase all securities for sale, regardless of whether they can be sold to the investor. This is the most desirable arrangement as it immediately guarantees all the money of the issuer.
Commitment usually refers to the insurer's agreement to assume all inventory risk. A firm commitment also means agreeing to buy and sell all IPO securities directly from the issuer. Other uses of commitments relate to loans and derivatives.
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Answer:
The closing process is necessary in order to confirm that net income or net loss and owner withdrawals for the period are closed into the owner's capital account.
Explanation:
Most economies around the world follow a specific accounting period which is commonly referred to as financial year or tax year. Before a new financial year begins, the accounts from the ongoing financial year have to be closed legitimately through a process called the 'closing process'. This process culminates in confirming that the net income secured or the net loss bore by the owner is included in no other account than the owner's capital account.
In order to carry out the closing process, the accountant has to commence with identifying the accounts that are required to be closed with or before the ending of the predefined financial period. He then has to record the last entries in these accounts as 'closing entries'. Once the accounts are closed, he has to calculate the trial balance and interpret the outcome. Closing of temporary accounts through a valid closing process dispenses the ease of calculating profit and loss in any given financial period coming to end.
Answer:
B and C
Explanation:
The correct statements about the factor-price equalization and the effects of transportation costs are:
- Free trade, in the absence of transportation costs or other barriers to trade, tends to equalize product prices and factor prices.
- Transportation costs prevent product prices from equalizing.
Answer:
The bank will be able to lend:
$42,105,263 ($8 million/ 0.19)
Explanation:
The above amount which the bank can lend from the $8 million received from the Federal Reserve for a customer is a function of $8 million deposit in a customer's account and the reserve ratio. This is called the money multiplier.
The money multiplier is the amount of money that banks generate with each dollar of reserves. Reserves is the amount of deposits that the Federal Reserve requires banks to hold and not lend. The level of Reserves and deposit liabilities determine the amount a bank can lend out.
The process by which banks create more money than the physical money is called money creation. This shows that a bank creates more money in the economy through its lending activities.
Answer:
Explained below.
Explanation:
The things I will be concerned about if I am going to buy television ads for my business are given as follows:
* I will choose the right time of the day for the advertisement.
* I will be staying within my budgetary limits as well.
* I will check my ads after it has been posted, just a little component of my ad may be dropping the mark.
