Answer:
a Interest paid to partners based on the amount of invested capital.
Explanation:
A partnership is formed between two parties that agree to go into a venture for mutual gain. The parties share ownership of the business entity and as such are entitled to profit from their equity holdings.
Interest paid based on invested capital is considered a distribution of profit by the business and not an expense. This is similar to sharing profit to shareholders in a company.
Legitimate expenses include: cost of sales, staff cost, administrative costs, advertising costs, and professional expenses like hiring an accountant.
Answer:
No it wont have enough money to build a warehouse in two years.
Explanation:
Firstly we are given that the warehouse is $1 million so the company needs to save this amount of money in two years time.
We know that the company has invested $500000 to date therefore we need to calculate if this $50000 per quarter investment will cover the the other portion for $500000 to meet the warehouse cost of $1 million so we will use the future value annuity formula to calculate this which is :
Fv = C[((1+i)^n -1)/i]
where Fv will be the future value after two years of the $50000 investment
C is the periodic payment of $50000
i is the interest rate per period which is 6% per quarter
n is the number of periods the payment is done here it is 4 x 2years= 8 periods / investments of $50000 that will be done.
thereafter we substitute on the above formula:
Fv = 50000[((1+6%)^8 - 1)/6%]
Fv = $494873.40
then we combine this amount to $500000 to see if it reaches $1 million
$494873.40+ $500000 = $994873.40 which is close to the warehouse cost of $1 million but it does not reach it so the company wont have enough money to purchase the warehouse.
Answer:
A
Explanation:
All of these are functions of foreign exchange markets
A form of debt or equity that possesses characteristics of both debt and equity financing is called <u>hybrid security.</u>
Debt financing means borrowing money from an external source and promising to repay it with interest by a specified future date. Equity financing means that someone donates money or assets to a company in exchange for a percentage of ownership. Each has its pros and cons, depending on your needs.
Debt financing involves borrowing money, while equity financing involves selling some of the company's shares. The main advantage of equity financing is that there is no obligation to repay the acquired funds.
The main difference between debt and equity financing is that debt financing occurs when a company raises capital by selling debt instruments to investors. In equity financing, on the other hand, a company raises capital by going public.
Learn more about hybrid security here brainly.com/question/17178041
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