Answer:
D) Liquidity
Explanation:
A closely held corporation has a limited number of stockholders, that is why their shares are not frequently traded. An advantage of purchasing shares from a publicly traded corporation is that they are traded on a daily basis, and if the investor needs to sell his/her shares, it can be done fairly quickly (they are a fairly liquid investment). On the other hand, since the shares of a closely held corporation are not frequently traded, even though they might be listed on a stock exchange, it may take much longer to sell them which makes them an illiquid investment.
Answer:
payback period is 5 years, 11 months
Explanation:
Payback Period is the length of time for the Total Cash flows to equal the initial capital Investment
Cash Flows Project
Year 0 (1,520,000)
Year 1 325,000
Year 2 270,000
Year 3 235,000
Year 4 235,000
Year 5 235,000
Calculation of years
Payback period = 5 years (Total inflows are 1,300,000)
Calculation of months
Payback period = Remaining Amount/Net Cash flow in Next Month × 12
= (1,520,000-1,300,000)/235,000 × 12
= 220,000/235,000 × 12
= 11
Therefore payback period is 5 years 11 months
Answer: Establishing a new performance standard.
Explanation: Performance standards are goals which are set about productivity and profitability. Performance standards usually starts by the setting of a certain performance expectations or goals which are to be achieved. Examples may include: Progress in an organisation is gauge when a certain landmark or progress linked to an individual goals and objectives are reached or obtained.
Answer:
"$224,000" is the correct solution.
Explanation:
The given values are:
Corporation purchased percentage,
= 25%
Original investment,
= $210,000
Short's net income,
= $80,000
Paid cash dividend,
= $24,000
Now,
The share of net income will be:
= 
= 
= 
($)
The cash dividend will be:
= 
= 
= 
($)
hence,
On December 31, 2021, the balance will be:
= 
= 
= 
= 
($)
