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grandymaker [24]
3 years ago
10

Sally is planning to sell her company and she prefers to obtain immediate liquidity, and the value of consideration to be fixed.

She should choose:A. A cash saleB. An IPOC. A stock-for-stock combinationD. None of these are correct
Business
1 answer:
ella [17]3 years ago
6 0

Answer: A cash sale

                                           

Explanation: In simple words, liquidity refers to the ability of an organisation to bear its short term expenses. For that a company must have cash or some assets that can be readily converted into cash in case of need.

Hence Sally should sell her company in cash sale as it will result in inflow of cash which will create liquidity and also the consideration will be certain with short timely payments.

Other option such as IPO or  stock for stock might result in increase in value but certainly won't give her liquidity.  

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What is activity based costing?
netineya [11]
The activities in an organization, who gives all of the costs and restocks all the products they sell by the amount of consumption any specific product has
3 0
3 years ago
When starting a new job, the form you complete to determine how much tax to withhold from your paycheck is called the _______.
Tamiku [17]
The form that you need to complete is called the Form W-4. This is use to compute the correct withholding tax of the employee base on written status, tax credits and allowances, other income and others. Should there be changes in any of those written above, the employee must update this form.
4 0
3 years ago
You purchased 300 shares of common stock on margin for $60 per share. The initial margin is 60% and the stock pays no dividend.
MrMuchimi

Answer:

- 41.67%

Explanation:

For computing the rate of return first we have to compute the initial investment which is shown below:

= Number of shares × per share ×  initial margin percentage

= 300 shares × $60 per share × 60%

= $10,800

Now Loss on sale of common stock is

= (Selling price - purchase price) × number of shares  purchased

= ($45 - $60 ) × 300  shares

= - $4,500

So the rate of return will be:

= Loss ÷ Initial Investment

= - $4,500 ÷  $10,800

= - 41.67%

7 0
3 years ago
Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50 per unit. If it sells the product for $75 per unit
Alla [95]

Answer: 20000

Explanation:

Fixed Operating cost = $500,000

Variable cost = $50 per unit

Selling price = $75 per unit

Break Even Quantity can be calculated as:

Fixed Cost/Unit contribution margin

= 500,000/(75-50)

= 500,000/25

= 20,000

5 0
3 years ago
Theresa Teutul was an executive with Digital Industries, a leading manufacturer of color televisions. She recognized that the co
vladimir1956 [14]

Answer:

The options for this question are the following:

a. Star

b. Cash Cow

c. Question Mark

d. Dog

e. None of these

The correct answer is b. Cash Cow .

Explanation:

The cash cow is a metaphor for a cash cow that produces milk throughout its life and requires little maintenance. A cash cow is an example of a cash cow, since after the initial capital outlay has been paid, the cow continues to produce milk for many years. These cash generators can also use their money to repurchase shares in the market or pay dividends to shareholders.

A cash cow is a company or business unit in a mature, slow-growing industry. Milk cows have a large market share and require little investment. For example, Apple (NASDAQ: AAPL) is considered a cash cow because it has established a well-defined niche in wireless gadgets. The different Apple product lines generate cash for other business lines at the beginning of their life cycle. On the contrary, a star is a company or business unit that operates in a high-growth industry. Question marks are the problematic son of the BCG shared growth matrix. They operate in high-growth markets and require capital to grow, but the probability of success is unknown. Dogs do not require much cash, but due to age, they tend to absorb large portions of capital.

6 0
4 years ago
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