1. D. to participate in the day-to-day operations.
Let's say that you buy a stock for microsoft, it doesn't make you able to come to their offices and help them handling the customers.
2. C. the risk of bankrupt is less
when you sell your company's stock to other buyers, that buyers will also take the risk from all your company's activity because technically they own a part of your company, which make the risk of going bankrupt is less, but you surrender a part of ownership of your company
3. B. Preferred Stock
Where a company liquidates its assets, they will distribute the payment to all the holders of preferred stock first.
If there's any leftover after the company distribute the payment to preferred stock holders, than that leftover is distributed to the common stock holders
Hope this helped you out
Answer:
Capital budgeting
Capital Structure
Working Capital Management
Explanation:
When a company wants to introduce any new product in the market it will do the cost benefit analysis and will involve the capital budgeting decisions.
When any kind of bonds are sold, shares are issued, debentures are sold, then that is about creating source of capital that is about, capital structure decision.
When the decision is made relating to any current assets or current liabilities, it is refer to working capital decisions as the working capital includes decision of current assets and current liabilities.
It is Based on The <u>Risk</u><u> </u><u>Level</u><u>.</u><u> </u>
Answer and Explanation:
The journal entries are shown below:
1 Equipment $53,420
To Cash $53,420
(Being the equipment is purchased for cash is recorded)
The computation is given below:
= Cash price of machine + sales tax + shipping cost + insurance during shipping + installation and testing cost
= $49,500 + $3,650 + $100 + $60 + $110
= $53,420
2. Depreciation expense $9,614
To Accumulated Depreciation - Equipment $9,614
(Being the depreciation expense is recorded)
The computation is shown below:
= ($53,420 - $5,350) ÷ ( 5 years)
= $9,614
Answer:
The producer is experiencing diminishing marginal product.
Explanation:
The law of diminishing return explains that every additional unit consumed will have less utility/return than the previous one. Same is the case with labor productivity. The first unit of labor will yield maximum return, every additional unit will result in lesser return/productivity than the previous unit. The will continue up to the point of maximum return. After that point adding additional resources will yield less total output.
