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3 years ago

Which type of financing refers to giving up some control of the business to raise funds?

Business

1 answer:

Lunna [17]3 years ago

3 0

Answer:

The correct answer is (B)

Explanation:

Equity financing is a way to arrange a fund, which includes surrendering some portion of the organisation since it should be imparted to the accomplices of the association who are generally the speculators. However, without the speculators, the organisation activities are probably not going to proceed. This kind of financing is utilised by elements that face hard monetary circumstances or new companies that start tasks

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This a type of unemployment that always exists and are relatively stable over time, including seasonal, structural, and friction

Darya [45]

<u>Answer: </u>Natural unemployment

<u>Explanation:</u>

Natural unemployment always exists even in a healthy economy this is because the people keep changing their jobs and they even leave the current job in search of the new ones. Natural unemployment also includes other types of unemployment such as seasonal, structural and frictional unemployment types.

Also some people might possess skills that are not necessary in the labor market. The natural unemployment is still in the economy even when there is technological advancement, industry expansion. New labor forces enter into market every year and people search jobs for better opportunities.

6 0

3 years ago

Read 2 more answers

Hemingway Corporation has 100,000 shares of common stock issued and outstanding. At the meeting of the board of directors on Dec

DaniilM [7]

Answer:

See the journal entry below

Explanation:

Retained earnings A/c Dr $500,000

Dividends payable A/c Cr $500,000

Here, cash dividend is being declared by the board on 100,000 shares hence the account of retained earnings is debited and account of dividends payable is credited.

NB.

Amount = Share × Price per share

Given that;

Share = 100,000

Price per share = $5

Amount

= 100,000 × $5

= $500,000

4 0

3 years ago

Select the correct answer.

kondor19780726 [428]

Answer:

I went with c

Explanation:

3 0

2 years ago

Read 2 more answers

Mutual funds _____. a. are investment companies that use funds provided by savers to buy various types of financial assets, incl

Crazy boy [7]

Answer:

Explanation:

Mutual funds are investment companies called AMC( asset management companies ) that gather funds from public by issuing units. These funds are then invested in financial securities and financial instruments likes bonds and shares. Mutual funds are managed by financial experts and are less risky for common public than direct investment in stock market.

7 0

3 years ago

Dexter Industries purchased packaging equipment on January 8 for $116,600. The equipment was expected to have a useful life of t

Luden [163]

Answer:

Straight-line method: $36,667 yearly depreciation expense for 3 years.
Unit-of-production method: Year 1 - $47,850, Year 2 - $40,590, Year 3 - $21,560
Double-declining method: Year 1 - $77,737, Year 2 - $25,910, Year 3 - $6,353

Total for 3 years is $110,000 for all the depreciation methods.

Explanation:

(A) Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($116,600 - $6,600) / 3 years = $36,667 yearly depreciation expense.

Accumulated depreciation for 3 years is $36,667 x 3 years is $110,000.

(B) The unit-of-production method is used when the asset value closely relates to the units of output it is able to produce. It is expressed with the formula below:

(Original Cost - Salvage value) / Estimated production capacity x Units/year

At Year 1, depreciation expense (DE) is: ($116,600 - $6,600) / 20,000 operating hours x 8,700 hours = $47,850

At Year 2, depreciation expense (DE) is: ($116,600 - $6,600) / 20,000 operating hours x 7,380 hours = $40,590

At Year 3, depreciation expense (DE) is: ($116,600 - $6,600) / 20,000 operating hours x 3,920 hours = $21,560

Accumulated depreciation for 3 years is $47,850 +$40,590 + $21,560 = $110,000.

Note that this depreciation method results in higher depreciation charge when the asset is heavily used, at this time, it was in Year 1.

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

SLDP is 100%/3 years = 33.33%, then 33.33% multiplied by 2 to give 66.67% or 2/3

At Year 1, 66.67% X $116,600 = $77,737

At Year 2, 66.67% X $38,863 ($116,600 - $77,737) = $25,910

At Year 3, 66.67% X $12,953 ($38,863 - $25,910) = $8,636. This depreciation will decrease the book value of the asset below its salvage value $12,953 - $8,636 = $4,317 < $6,600. Depreciation will only be allowed up to the point where the book value = salvage value. Consequently the depreciation for Year 3 will be $6,353.

Accumulated depreciation for 3 years is $77,737 + $25,910 + $6,353 = $110,000.

6 0

3 years ago