Answer: C. separation of legal ownership and management control
Explanation: Public traded company can go on with their operation undisturbed when the founder dies, because there is separation of ownership from management of the company.
Public traded companies usually have a board which management report to, the board is the highest decision making body in the company.
Answer:
Carpenter will have to pay taxes for a recognized gain of $150,000
Explanation:
When you are calculating taxes, you must use the adjusted a¿basis of the buildings.
Paul is exchanging a $450,000 building + $75,000 in cash for a $375,000 office building.
Paul's realized loss = $525,000 - $375,000 = $150,000
therefore Carpenter's recognized gain = $150,000
Answer:
V = 3.5 (1 dollar circulates 3.5 times in a year)
In short term – Reduction of aggregate demand and real output
In long term – reduction of wages and increase of real output of firms
Nominal GDP will fall by $20 bilion
Explanation:
Equation of monetisation =
Total money in circulation = Total money demanded/total output
Money Supply * Money Velocity = Price Level * GDP
V = PY/M
Substituting the given values, we get –
V = 336/96
V = 3.5
This indicates 1 dollar circulates 3.5 times in a year
In short term – Reduction of aggregate demand and real output
In long term – reduction of wages and increase of real output of firms
Nominal GDP will fall by $20 bilion
Answer:
NPV = 3,404.41
Explanation:
We will calculate the net present value doing:
<em>NPV = present value of the cash flow - investment</em>
Investment = 34,000
Now we need to discount each cash flow at the given rate.
<u>For that,</u> we will treat the cash flow as an annuity of 11,800 for 4 year at 10% rate:
C 11800
time 4
rate 0.1
PV $37,404.41
<em>NPV = present value of the cash flow - investment</em>
<em>NPV = 37,404.41 - 34,000 = 3,404.41</em>