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Bezzdna [24]
3 years ago
6

Which of the following statements is CORRECT? Group of answer choices Unlimited liability and limited life are two key advantage

s of the corporate form over other forms of business organization. Limited liability is an advantage of the corporate form of organization to its owners (stockholders), but corporations have more trouble raising money in financial markets because of the complexity of this form of organization.
Business
1 answer:
Pepsi [2]3 years ago
5 0

Answer:

The correct statement is;  Limited liability is an advantage of the corporate form of organization to its owners (stockholders), but corporations have more trouble raising money in financial markets because of the complexity of this form of organization.

Explanation:

A limited company can either be private or public. A limited company posses these 2 key features namely;

1.  Limited liability- the liability of shareholders is limited to the amount of their investment in the company.

2. Seperate legal existence-  a limited company can in it's name sue, be sued and enter into contracts.

Limited liability means that the investors can only lose the money they have invested and no more, meaning lenders have to keep this in mind when issuing loans to limited companies.

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The potential benefit that is given up when one alternative is selected over another is called a sunk cost. true false
Keith_Richards [23]

Answer:

false                            

Explanation:

The given statement depicts opportunity cost and not sunk cost. A gain, income, or interest of something which has to be given up in order to obtain or accomplish anything else. Because each resource can be put to different uses, each action, option, or decision has an added cost of opportunity.

On the other hand, Sunk cost refers to the cost already accumulated and also not recoverable. Sunk costs is often compared with potential costs, which could be reduced in the future if measures are taken.

3 0
2 years ago
Simone uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records
True [87]

Answer:

399,200

Explanation:

4 0
2 years ago
If the consumer price index changes from 125 in september to 150 in october, what is the rate of inflation?.
nexus9112 [7]
The rate of inflation is 20%.
In September price is = 125 
And in October  price = 150
rate of inflation = (150 -125)/125 x 100 
= 25/125 x 100
=0.2 x 100 = 20% 
4 0
3 years ago
One year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.5 percent, paid semiannually, and a fa
ycow [4]

Answer:

Percentage change in the bond price=0.524%

Explanation:

The current bond price can be expressed as;

Current bond price=(Semi-annual coupon×((1-(1/(1+r)^i)/r)+ (face value/(1+r)^i)

where;

i-maturity period=1 year ,since it has 2 periods in a year,i=2

r-nominal yield to maturity rate=7.2/2=3.6%

Semi-annual coupon rate=6.5/2=3.25%

face value=$1,000

Semi- annual coupon=(3.25/100)×1,000=$32.5

replacing;

Current bond price=Semi-annual coupon×((1-(1/(1+r)^i)/r  + face value/(1+r)^i

(32.5×((1-(1/(1+0.036)^2)/0.036)+1,000/(1+0.036)^2

(32.5×(1-0.93)/0.036)+931.71

(32.5×1.94)+931.71=63.05+931.71=

Current bond price=$994.76

Percentage change=((Face value-Current bond price)/(Face value))×100

Percentage change=((1,000-994.76)/1000)×100

(5.24/1000)×100=0.524%

Percentage change in the bond price=0.524%

5 0
2 years ago
ABC Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales $ 17,910,000 Net
bogdanovich [222]

Answer:

28.23%

Explanation:

ABC corporation has a sales of $17,910,000

The net operating income is $1,199,970

The average operating assets is $4,250,000

Therefore, the ROI can be calculated as follows

ROI= Net operating income/Average operating assets

= $1,199,970/$4,250,000

= 0.2823×100

= 28.23%

Hence the division's return on investment is closest to 28.23%

6 0
2 years ago
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