Answer:
Explanation: Financial Statement
the financial statement is an annual statement stating the financial position of an organisation
Under the financial statement we have:
1. Income Statement: Expenses, Net Income
2. Balanced Sheet: Cash Asset, Non cash Asset, Retained Earnings
3. Statement of stockholders equity: Contributed Capital, cash inflow for stock issued, cash outflow for dividends
4. Statement of cash flow: cash flow for capital expenditures
Answer:
FALSE
Explanation:
As the lower coupon means there is less amount of cash subject to variation of interest rate.
We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.
If a bonds coupon payment is 40 dollars while another bond coupon payment is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.
Answer:
A. The trade-off a firm faces when using retained earnings or borrowed funds is the same.
Explanation:
- A trade-off is based on the situational decisions that usually involve the loss of quality and a property that is set or designed to give a return in the other aspects.
- As one part has to increase and the other has to decrease. The trade-off is commonly expressed as in the terms of opportunity costs which states the loss of the best alternative.
Answer:
Sole Proprietorship
Explanation:
Charles is planning to start a sole proprietorship business. It is the most common form of business ownership.
This is the form of business owned, managed and operated by a single individual. Here, there is no distinction between the business and the owner. The owner of the business will have total control of all the profits incurred in the business and solely be responsible for all losses incurred as well.