Answer:
D. All of these answer choices are correct.
Explanation:
When a company purchases its own shares then the equity capital is reduced, as it is not an investment, but rather reducing the ownership share.
Equity value reduces with the par value of the share.
The paid in capital in excess of par value shall also be reduced if the share is bought for a value more than the par value, but in case if it is bought for less than the par value then the par value shall reduce the equity balance and that the difference in par value and bought up value shall be added to retained earnings.
In the given instance the total equity shall be reduced by $125,000
In this the equity capital by $50,000 and paid in capital in excess of par value by $125,000 - $50,000 = $75,000
Thus, all the statements are correct.
Answer: Most policies have a nonforfeiture benefit to refund a portion of a policy's cash value when coverage stops.
Explanation:
Term insurance is a type of life insurance policy whereby the policy owner will be given coverage for a particular time period.
It should be noted that term insurance can be renewed for additional periods without evidence of insurability and can also be converted to a permanent life insurance policy.
The option that most policies have a nonforfeiture benefit to refund a portion of a policy's cash value when coverage stops is not true.
Buying an existing business is beneficial because it does not require large initial capital.
Option a
<u>Explanation:
</u>
The idea of buying an existing business is much easier than that of starting a business. Buying an existing business includes lesser risks. When we are buying a business, it means that we are taking over an operation that is already generating some profits or cash flows.
Moreover, it does not need enormous amount of capital since, majority of the setups will already be there and all we have to do is just to reconstruct and maintain it. We cannot be sure that whether the previous business holder had professional financial dealings with the government side so, it sometimes may become our duty to initiate the papers and get financial support from the government if required.
In addition, there are cases in which the lenders that the previous owner dealt with will not be the same as ours. Therefore, the answer would be option a.
Answer:
b. are clear in their own minds about the scope of the negotiations.
Explanation:
Shadow negotiations refer to the unspoken assumptions that determine how those involved in a deal with each other, whose opinions get heard, whose interests hold sway. Therefore, this is important so the negotiators are clear in their own minds about the scope of the negotiations. Meaning that they go into the negotiation knowing who has more bargaining power and how far they can actually take the negotiation.