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Aliun [14]
3 years ago
6

A corporation's legal capital:

Business
2 answers:
kotegsom [21]3 years ago
8 0

Answer:

The correct answer is Option D.

Explanation:

Corporation legal capital is the amount of equity that cannot legally be allowed to leave the company's books. The company cannot pay out dividends or any other thing from the legal capital. The legal capital is always regulated by the regulators e.g., central banks, Securities and Exchange Commission (SEC), insurance commission, etc.

The objective of having a legal capital is to protect the company's creditors in the event of default, however, this intent is being negated by companies as they issue low par values of stock.

Some states do not require any par value, meaning the companies in those states have no capital requirement.

Fantom [35]3 years ago
3 0

Answer: d. Is established to protect the corporation's creditors.

Explanation:

A corporation's legal capital is the part of a company's equity that absolutely cannot be allowed to leave the company. It is illegal to distribute them as dividends or any other means.

The purpose of this is to ensure that the creditor's rights to assets in the company are protected in the event that some mishap should befall the company.

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Which of the statements below is​ FALSE?
Alecsey [184]

Answer:

C. The standard of one vote for each share cannot be altered.

Explanation:

Shares are sold to individuals that now obtain ownership rights of a company.

Common share holders are entitled to voting in of new board members and also have the ability to vote for changes in bylaws of the company.

Also common shareholders are shares have different classes with different voting rights.

However it is not true that the standard of one vote for each share cannot be altered.

When more shares are issued by a company it can result in dilution of shares. That means for example if a person has 10,000 shares in a company with 1 million shares, and the company now issues an extra 1 million shares making 2 million in total now.

The shareholder's standard of vote for each share is now halved

5 0
2 years ago
Formal planning means specific goals are formulated and never reduced to writing but simply communicated.
Alexxx [7]
<span>The statement that formal planning means specific goals are formulated and never reduced to writing but simply communicated is false. 
</span><span>In opposite formal planning is type of strategic planning that includes writing of the organization's goals and objectives. The given definition refers to the informal planning. </span>
3 0
3 years ago
Which one of the following is a source of cash? Select one: A. Decrease in inventory B. Increase in fixed assets C. Decrease in
FromTheMoon [43]

Answer:

A. Decrease in inventory

Explanation:

A decrease in inventory means that inventory is being sold therefore there is consequently a increase in cash.

4 0
2 years ago
Mr. Hugh Warner is a very cautious businessman. His supplier offers trade credit terms of 3/19, net 60. Mr. Warner never takes t
vekshin1

Answer:

35.92%

Explanation:

The computation of cost of not taking the cash discount is shown below:-

Discount percentage ÷ (100 - Discount percentage) × (360 ÷ (Full Allowed Payment Days - Discount Days))

= 3% ÷ 97% × 360 ÷ (50 - 19)

=  3% ÷ 97% × 360 ÷ 31

=  0.03093 × 11.61290

= 0.359187

= 35.92%

Therefore for computing Mr. Warner's cost of not taking the cash discount we applied the above formula.

3 0
3 years ago
When tires are taxed and sellers of tires are required to pay the tax to the government, Group of answer choices the price paid
lyudmila [28]

The correct option is, the quantity of tires bought and sold in the market is reduced.

<h3>When tires are taxed and sellers of tires are required to pay the tax to the government?</h3>
  • The amount of tires purchased and sold on the market decreases when tires are taxed and tire vendors are compelled to pay tax to the government.
  • The loss of consumer and producer surpluses that are not accounted for in government revenue.

<h3>When a tax is placed on a product the price paid by buyers?</h3>
  • In general, taxes increase the price consumers pay, decrease the price sellers receive, and decrease the amount of goods sold.
  • A tax must result in a deadweight loss if it is imposed on a good and sales volume is decreased.

<h3>What is deadweight loss?</h3>
  • The cost of market inefficiency, which happens when supply and demand are out of balance, is known as a deadweight loss.
  • Deadweight loss, a term mostly used in economics, refers to any deficit brought on by an ineffective resource allocation.

Learn more about taxed here:

brainly.com/question/26316390

#SPJ4

7 0
1 year ago
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