In order to overcome the free rider problem, interest groups often provide attractive offers to their members. Interest groups attempt to influence developments or trends in a way that benefits its members or the cause they support, in addition to reporting on them.
This persuasion is carried out through lawsuits, political action committees, grassroots efforts, and lobbying. All interest groups share the desire to influence governmental policy in order to advance their causes or themselves. Their objective can be to implement a policy that only benefits members of their group or a particular social class.
Interest groups exist because they found different ways to draw members in order to solve the free rider issue. A contract, or exchange, between a group entrepreneur and an unorganized interest that may be underrepresented or not represented results in the formation of an interest group.
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Answer: The answer is provided below
Explanation:
a. The reconstructed journal entry has been prepared and attached.
b. The following are the effects it has on the investing section or the financing section of the statement of cash flows.
The first transaction will lead to a cash inflow of $8,000 from the investing activities.
The second transaction is non-cash transaction therefore, it will not be reported in either the financing or the investing activities.
The third transaction will lead to a cash inflow of $2,000 from the financing activities.
The fourth transaction will lead to a cash outflow from the financing activities.
Thw diagram has been attached.
Answer:
B. Available for sale securities
Explanation:
Available for sale securities refer to debt or equity instrument. They are purchased with a pre defined aim of selling them before their maturity, for profit earning. Such profit is usually a 'quick capital gain'. Apart from profit, they also assist for liquidity, repaying needs of companies.
These equities are reported at 'fair value'. This implies that unrealised gains & losses are not included in earnings. They are rather recorded in a specific segregated item head 'accumulated other comprehensive income' of shareholder's equity.
Wages because employees receive wages every week
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