Answer:
b) Reduce potential dilution
c) Have no effect on interest costs
Explanation:
Since in the question it is mentioned that the corporation is offering its existing bondholders for paying 6 1/2% this matured at the same time just like the convertible bond.
So here if the proposal is completed so the impact would be reduction in the potential dilution also it would not have impact on the effect on the interest rate and the same is to be considered
Answer:
b. It may be used to estimate inventories for interim statements.
Explanation:
As we know that
Gross profit = Sales - the cost of goods sold
By doing the inventory valuation through the gross profit method, it estimated inventories for interim statements as these statements are covering the financial information that is less than a year so that the proper analysis could be made and in this, no auditing is required.
Therefore, for interim statements, the gross profit method is required.
Answer:
e. One advantage of forming a corporation is that equity investors are usually exposed to less liability than they would be in a partnership.
Explanation:
The investor of a corporation have limited liability. This measn their responsability is capped at their contribution. On parthership, this does not ocurs.
(c)(d) Corporation face more regulation and are harder to create than a parthership.
(b) parthenrship has unlimited liability.
Answer:
a. Linda's acceptance is effective and a contract is created.
Explanation:
A contract is created when there is an offer and acceptance of a transaction. When the contract is created it is enforceable and not revocable unless with the consent of parties involved.
Bob made an offer to Linda to buy her 1,000 of her widgets. The offer is open for 3 weeks and Linda accepted the offer within one week.
Although Bob tried to revoke the offer, since Linda has accepted it the contract is created and enforceable on Bob.
Idk who that is either lol
