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salantis [7]
3 years ago
13

A major reason Enron used special purpose entities was: a. To increase equity dilution b. To increase working capital c. Off-bal

ance-sheet reporting d. To increase pension plan funding levels
Business
1 answer:
Liono4ka [1.6K]3 years ago
7 0

Answer:

<h2>The correct answer here is option c. or Off balance sheet reporting.</h2>

Explanation:

The usage of special purpose entity(SPE) was a strategical move by Enron with the major objective to restrict or conceal the financial debt or the existing assets and avoid any responsibility of consequent financial liability that might reflect in the accounting books such as Balance Sheet.SPE basically constitutes a strategy for the company to conceal any financial risk or liability and avoid or hide any kind of financial debt in the accounting books to gain investor's trust and confidence.The company also allegedly used the same strategy to ensure book earnings and consistent operational cash flow.

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Why multinational company are developed​
blagie [28]

Answer:

Multinationals provide an inflow of capital into the developing country.

Explanation:

This capital investment helps the economy develop and increase its productive capacity.

5 0
3 years ago
Read 2 more answers
John Maynard Keynes created the aggregate expenditures model based primarily on what historical event? Question 9 options: econo
kirill [66]

Answer: Great Depression

Explanation:

The Great Depression was an economic depression that took place worldwide which was as a result of the crash in the stock market. The Great Depression brought about reduction in GDP of countries due to the fall in demand of goods and services.

John Maynard Keynes created the aggregate expenditures model based primarily on the Great Depression. This method is used to calculate the GDP for a country.

6 0
3 years ago
Opportunity costs refer to_____________.
Mamont248 [21]

Answer:

D. trade-offs associated with financial decisions.

Explanation:

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Let's assume Martin can produce either 5 jeans or 10 shirts in one hour. If Martin decides to produce jeans instead, his opportunity cost are the shirts he trades off when he decided to produce jeans.

I hope my answer helps you

4 0
3 years ago
What piece of U.S legislation acts as the primary authority on collective bargaining
kramer
The main body of law governing collective bargaining is the National Labor Relations Act (NLRA). It is also referred to as the Wagner Act. It explicitly grants employees the right to collectively bargain and join trade unions. The NLRA was originally enacted by Congress in 1935 under its power to regulate interstate commerce under the Commerce Clause in Article I, Section 8 of the U.S. Constitution. It applies to most private non-agricultural employees and employers engaged in some aspect of interstate commerce. Decisions and regulations of the National Labor Relations Board (NLRB), which was established by the NLRA, greatly supplement and define the provisions of the act.

The NLRA establishes procedures for the selection of a labor organization to represent a unit of employees in collective bargaining. The act prohibits employers from interfering with this selection. The NLRA requires the employer to bargain with the appointed representative of its employees. It does not require either side to agree to a proposal or make concessions but does establish procedural guidelines on good faith bargaining. Proposals which would violate the NLRA or other laws may not be subject to collective bargaining. The NLRA also establishes regulations on what tactics (e.g. strikes, lock-outs, picketing) each side may employ to further their bargaining objectives.

State laws further regulate collective bargaining and make collective agreements enforceable under state law. They may also provide guidelines for those employers and employees not covered by the NLRA, such as agricultural laborers.

3 0
3 years ago
Unearned fees appear on the a.income statement as revenue b.balance sheet in the current assets section c.balance sheet in the o
ZanzabumX [31]

Answer:

The answer is D. balance sheet as a current liability

Explanation:

Unearned fee is the amount that has been collected before rendering a service. For example, a customer paid in advance for goods that have been delivered, a football season ticket holder. The full service has not been rendered. So it is recognized as a liability because the customer can terminate the contract anytime.

As the service is being rendered, maybe monthly, quarterly or weekly, revenue is recognized and unearned fee decreases.

For example, a customer paid a $12,000 on Jan 1. for monthly delivery of magazine for a year. Here, the customer paid for a service that last till Dec 31st.

What will be recognized as revenue monthly is $1,000($12,000/12months) and unearned revenue too decrease by $1,000 monthly

4 0
3 years ago
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