Answer:
True
Explanation:
The reason is that all the management owe fiduciary duties towards the shareholders and the corporation as well because the managers are acting as an agent and their principal is shareholders are principal so the agent must act in the best interest of the principal and shareholder's best interest here is long term success of the company with no fraudulent activities in the company. This law protects the shareholders by stating that management owe fiduciary duty to shareholders which is a true statement.
Answer:
c) Provide potential benefits to both the issuer and the investor.
Explanation:
Convertible Bonds are Bonds that can be converted to Common Stocks at the the option of the investor or the issuer.
They represents the potential voting rights to the investor if they are converted to Common Stocks. This means the investor can take part in decision making of the company.
They also presents benefits to the issuer in that it reduces the financial risk of defaulting interest payments. This is good for the gearing ratio as well and can attract more investors.
Answer:
having lower overhead costs.
Explanation:
Robert started his company in his mother's garage so he did not have to pay rent or lease at the initial stage of his business. This gave him the opportunity to put his finances in essential aspects of his business.
Therefore he had an opportunity to reduce his overhead cost.
Answer:
the average collection period for accounts receivables is 41.2 days
Explanation:
Average Collection Period measures the amount of time it takes to collect credit from accounts owing.
Average Collection Period = Average Accounts Receivables / (Sales/365)
=(($27600+ $56400)/2) / ( $372000/365)
= $42,000/1019.178082
= 41.20967742
= 41.2 days
Answer:
c) $13,000.
Explanation:
Using the accounting equation;
Assets - liabilities = Owners' equity
Owners' equity is usually made up of the common stock and the retained earnings.
Therefore, given;
Assets = $50,000
Liabilities = $22,000
Owners' equity = $50,000 - $22,000
= $28,000
Owners' equity = Retained earnings + common stock
Retained earnings = $28,000 - $15,000
= $13,000
Amount for retained earnings is $13,000.
