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aalyn [17]
4 years ago
6

One of the disadvantages of issuing stock is that

Business
2 answers:
n200080 [17]4 years ago
8 0

One of the disadvantages of issuing stock is the fact that it dilutes the earnings for shareholders.

The more shares there are, the less earnings.  

Whitepunk [10]4 years ago
7 0

Answer:

when the stocks are issued, the ownership structure of the company changes and the initial founders may lose their majority stake in the company eventually. Moreover, when more shares are available in the equity market, the company is at the risk of a take over by a rival company.

Explanation:

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Jones Company possesses a 25 percent interest in the outstanding voting shares of Sandridge Company. Under what circumstances mi
coldgirl [10]

Answer:

Jones may decide that the equity method would not be appropriate to account for the investment when Jones Company does not have significant influences over the management/operation of Sandridge Company.

Although an investors holding from 25% of investee is very much likely to have significant influences on the investee, this may not be true all over the times. For Jones, to prove that it does not have significant influences over Sandridge, there may be some following evidences:

+ Jones and Sandridge sign an agreement that Jones surrenders  significant rights as a shareholder;

+ There is/are investor(s)/group(s) of investors who has more voting right than Jones and whose visionary/mission for Sandridge is opposite to Jones's.

+ Sandridge tries to reject Jones' influences on its management by seeking lawsuit or by successfully prevent representatives from Jones on its Board of Directors.

Explanation:

8 0
3 years ago
A company currently sells products in the United States and is considering expanding to China or Vietnam. Expanding won't impact
mariarad [96]

Answer: Company should not expand to either.

Explanation:

Find the expected values of expanding to either country and pick the country with the highest expected value:

China:

= ∑(Probability of outcome * Outcome)

= (20% * 2,000,000) + (30% * 1,000,000) + (50% * -2,000,000)

= -$300,000

Vietnam:

= (70% * 1,000,000) + (30% * -2,500,000)

= -$50,000

<em>Both countries result in an expected loss so company should not expand to either of them. </em>

3 0
3 years ago
Marguerite starts a corporation. Her articles of incorporation specifically state that the corporation will work in the beauty p
lukranit [14]

Answer:

C

Explanation:

Marguerite starts a corporation. Her articles of incorporation specifically state that the corporation will work in the beauty products industry. Marguerite would like to take out a loan on the company's behalf. She can because of the implied powers of the corporation.

6 0
4 years ago
Using the transportation method for solving the optimal shipping a product from factories to warehouses, as per text, you should
scoundrel [369]

Using the transportation method for solving the optimal shipping of a product from factories to warehouses is e) "≤" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses.

The transportation method of linear programming is applied to the problems associated with the examination of the efficient transportation routes i.e. how efficaciously the product from extraordinary sources of manufacturing is transported to exceptional locations, consisting of the overall transportation price is minimum.

The transportation model is a special class of linear programming that offers the delivery of a commodity from assets (e.g. factories) to destinations (e.g. warehouses) objective: The objective is to decide the transport agenda that minimizes the full transport price even as gratifying supply and call for limits.

The transportation method is a special case of linear programming issues wherein the goal is to limit the entire price of transporting items from diverse delivery origins to distinct demand destinations.

Disclaimer: The question is incomplete. Please read below to find the missing content.

Question: Using the transportation method for solving the optimal shipping of a product from factories to warehouses, as per text, you should use

a) "=" for constraints regarding factory capacity and "≥" for constraints regarding demand at warehouses

b) "≥" for constraints regarding factory capacity and "≤" for constraints regarding demand at warehouses

c) "≥" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses

d) None of the above

e) "≤" for constraints regarding factory capacity and "=" for constraints regarding demand at warehouses.

Learn  more about transportation methods here brainly.com/question/13926750

#SPJ4

3 0
1 year ago
Your neighbor is an avid gardener who changes his flower displays four times per year and who was given the "best yard on the bl
tensa zangetsu [6.8K]

Answer: C. a positive externality.

Explanation:

The positive externality refers to actions that directly or indirectly present benefits to society. Sometimes these activities are paid for third parties, likewise, it can be seen that each action that is carried out, however small, will have effects on people (society) causing a positive externality.

For example, in the case of the neighbor, there is a positive externality, since his ability with the garden gives the neighborhood a nice touch, although some plants are not liked by some neighbors, you can see different and beautiful things in the neighbor's garden, and this benefit is being obtained at no cost to others since the person who invests is a person and the others also enjoy the benefits of it.      

<em>I hope this information can help you.</em>

7 0
3 years ago
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