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Inessa [10]
2 years ago
15

3. Vocabulary test. Explain the differences between: a. Real and financial assets. b. Capital budgeting and financing decisions.

c. Closely held and public corporations. d. Limited and unlimited liabili
Business
1 answer:
VikaD [51]2 years ago
8 0

Answer:

The correct answer is:

a) A real asset is a Tangible Asset, Like a machine, a Land or a Building. Real Assets are used to generate resources and, therefore, produce changes in the financial situation of the company that owns them. While a financial asset on the other hand constitutes the right to collect an account in the future. In the case of companies, you can think of an account or document receivable; For natural persons, a financial asset can be a document that compares a plaque investment in a banking institution and that will produce a cash flow in the future.

b) Investment projects are independent, perfectly divisible, and the company can invest any amount of money in a project. Only investment opportunities existing at the present time and not future are considered.  While capital budgeting, it is a projection either in the short term or in the long term, and the reasons for making this budget are that:  Benefits from the point of view of administrative planning and control., an investment proposal must be judged in relation to whether it provides a return equal to or greater than that required by investors y the evaluation of projects through mathematical-financial methods.

c) When a corporation is established, its shares may be in the hands of a small group of investors, perhaps the company's administrators plus some sponsors. In this case, the shares are not sold to the public and the company is closed. Over time, if the company grows and new shares are issued to raise capital, these shares go public. The company becomes a public company.

d) Limited liability means that the liability of each partner's debt is limited to their investment in the business, that is, they cannot be held personally responsible for the debts of other parties, if the company is sued or forced to close, the Each partner's business assets may be liquidated, but his personal assets are safe. Furthermore, unlimited liability means that all parties are responsible for all debts of the company, regardless of how it was created. If a partner commits acts that cause the business to reconcile, all parties become part of the process, not just the partners whose actions caused the judgment.

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Answer:

B. Family members

Explanation:

A traditional economy is based upon the customs, beliefs, and history of the community. Age-old traditions and beliefs guide economic decisions of production and distribution. The traditional economy is motivated by the social well being of its members and not by profits.

The main economic activities under the traditional economy revolves are subsistence farming, fishing, and hunting. These activities are carried out in family settings. In other words, family members provide labor for economic activities.

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In 1932, the U.S. government imposed a two-cent tax on checks written on deposits in bank accounts. This action would be expecte
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Increase the currency-deposit ratio

Decrease money supply

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3 years ago
If, in a specific year, exports are $40 billion, business expenditures are $60 billion, the government collects $50 billion in t
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The fiscal deficit for the government for the current year will be $20 billion for the given condition.

<h3>What is fiscal deficit?</h3>

The condition where there is an excess of expenditures over the income during a given financial period, it is known as fiscal deficit. The computation of fiscal deficit using the formula and the given information will be,

Fiscal Deficit = (Total Income – Total Expenditure)

Fiscal Deficit = $50 billion – $70 billion = -$20 billion

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In Chapter 7 bankruptcy, liquidation, A. all the debtors' debts are discharged. B. the debtor keeps their assets. C. the trustee
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<span>In Chapter 7 bankruptcy, liquidation, the trustee sells off the debtor's assets and pays creditors. A Chapter 7 bankruptcy often turns into a Chapter 13 which is based around selling debt off to pay creditors. Selling off the assets and liquidating them gives them cash on hand to pay off what needs to be paid. </span>
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