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3 years ago

Questions from the topic of forms of business organisation

Business

1 answer:

qaws [65]3 years ago

8 0

<h2>☃️ Imp. Questions:</h2>

1) By whom are the Board of Directors elected in the Joint Stock Company?

Answer: The Board of Directors in the Joint Stock Company are elected by the shareholders $.$

2) What is a Joint Stock Company?

Answer: A joint-stock company is a business controlled by its investors, with each investor enjoying a share based on the amount of stock acquired.

Joint-stock companies are formed in order to finance efforts that are too valuable for an individual or even a government to support. The owners of a joint-stock company demand to share in its profits.

3) Which is the business organisation that is found only in India?

Answer: Joint Hindu Family is the business organisation that is found only in India.

4) Who is a secret partner?

Answer: Secret partner is a partner whose membership in a partnership is maintained secret from the public.

5) What is a partner by estoppel?

Answer: A legally obligatory partnership that might result where, in fact, no formal partnership agreement is in force. A person who by rule or words serves or permits him/herself to be represented, as a partner in an enterprise is responsible for the credit or loans acquired by the enterprise on the basis of such representation. Which is also known as the presumption of partnership.

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You might be interested in

What do individual shareholders gain when they buy shares of a company’s stock?

evablogger [386]

Individual shareholders will have the right to receive dividends declared. They can sell their shares and have the right to purchase issued shares. They can vote on the directors nominated by the board. They also have the right to the remaining assets after liquidation.

8 0

2 years ago

The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000,

Margaret [11]

Answer:

36.26%

Explanation:

Simple rate of return:

return/investment

return:

In this case, it will be the cost saving for the new machine: 161,000

investment

We will decrease the investment by the recovery from the old machine.

468,000 new machine - 24,000 salvage value of new = 444,000

Then, proceed to calculate:

161,000/444,000 = 0.3612 = 36.26%

Consideration:

Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.

3 0

2 years ago

Two companies share a market, in which they currently make $5,000,000 each. Both need to determine whether they should advertise

snow_tiger [21]

Answer: Please refer to Explanation.

Explanation:

Two Companies. We shall call them A and B.

If A and B decide not to advertise, they both get $5,000,000.

If A advertises and B does not then A captures $3 million from B at a cost of $2 million meaning their payoff would be,

= 5 million - 2 million + 3 million

= $6 million.

A will have $6 million and B will have $2 million as $3 million was captured from them. This scenario holds true if B is the one that advertises and A does not.

If both of them Advertise, they both reduce their gains by $2 million while capturing $3 million from each other so they'll essentially both have just $3 million if they both decide to advertise.

With the above scenarios, it is better for both companies to ADVERTISE if there is NO COLLUSION. This is because it ensures that they do not get the lowest payoff of $2 million if the other company decides to advertise and they do not.

However, if they DO COLLUDE. They must both decide that NONE of them SHOULD ADVERTISE and this would leave them with their original $5 million each which is a higher payoff than the $3 million they will both receive if they were both advertising.

3 0

3 years ago

Classified ads in newspapers

ZanzabumX [31]

A.are a good source of referrals.

5 0

3 years ago

Mays Corp. reported free cash flows for 2018 of $491 million and investment in operating capital of $321 million. Mays Corp. inc

Anon25 [30]

Answer: $975 million

Explanation:

Given the above details, we can solve for Earnings Before Tax and Interest with the following formula,

Operating Cash Flow = EBIT – Taxes on EBIT + Depreciation

Making EBIT the subject would turn it to be,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

We have all of the above except the EBIT and Operating Cash Flow.

Luckily we can solve for the Operating Cash Flow with the details given using,

Operating cash flow = Free Cash Flow + Investment in operating capital

Therefore,

= $491 million + $321 million

= $812 million

Operating cash flow is $812 million

Plugging it into the original formula we have,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

EBIT = $812 million + $309 million - $146 million

EBIT = $975 million

Earnings before Taxes and Interest is $975 million.

If you need any clarification do react or comment.

5 0

2 years ago

Questions from the topic of forms of business organisation​

Questions from the topic of forms of business organisation