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3 years ago

Why would a decrease in a company's stock value make them nervous, even though the decrease might be small?

1 answer:

3 0

A decrease in a company stock value will make the company nervous even if the decrease is small due to these following scenarios.

1) They don't have a stockpile of cash.
2) It will become a problem for companies that relies on outside financing to fund their operations. Decrease in stock value will make their creditors wary in letting them borrow more money.
3) Many stock companies use stock options as part of their employee benefits. If the value decreases, then employees will not be encouraged to stay on with the company.
4) Continuous decrease in stock value will result to disgruntled stakeholders which may prompt dismissal of the CEO and his/her team and replacing them with more capable people..

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The project management institute initially published the _________ to address the need to bridge the gap between organizational

Zigmanuir [339]

The project management institute initially published the Organizational Project Management Maturity Model (OPM3).

<h3>What is management?</h3>

Management refers to the group of people working together in order to achieve the common goals of the organization. It involves certain activities such as planning, organizing, directing, staffing, commanding and controlling.

Organizational Project Management Maturity model, which implies that procedures centered on a single discipline. The five-step approach covers fundamental to advanced procedures.

It bridges the gap between the organizational strategy and successful projects.

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2 years ago

Emery is a corporate officer of Frakking Mining Corporation. With respect to binding Frakking Mining to contracts, Emery is Grou

vivado [14]

With respect to binding Frakking Mining to contracts, Emery is: B. an agent and has the authority.

<h3>What is contract?</h3>

A contract can be defined as an agreement between two or more parties in which the parties involve tend to agreed to the terms and condition of the contract.

Hence, if Emery serves in a representative capacity for Frakking's Mining Corporation owners with regards to binding Frakking Mining to contracts, Emery is will be an agent and tend to have the authority.

Therefore the correct option is B.

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2 years ago

The following monthly data are available for Waterway Industries. which produces only one product: Selling price per unit, $54;

o-na [289]

Answer:

Margin of safety= 950 units

Explanation:

<u>First, we need to calculate the break-even point in units:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 42,000 / (54 - 14)

Break-even point in units= 1,050

<u>Now, the margin of safety in units:</u>

<u></u>

Margin of safety= (current sales level - break-even point)

Margin of safety= 2,000 - 1,050

Margin of safety= 950 units

8 0

3 years ago

The Swifty Company issued $300,000 of 8% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each

makvit [3.9K]

Explanation:

The journal entries are shown below:

a. On January 1

Cash A/c Dr $288,000 ($300,000 × 96%)

Discount on Note payable A/c Dr $12,000

To Note Payable A/c $300,000

(Being the note payable is recorded at discount)

b. On July 1

Interest expense A/c Dr $13,500

To Discount on bonds payable A/c $1,500 ($12,000 ÷ 8)

To Cash A/c $12,000 ($300,000 × 8% ÷ 2)

(Being interest expense is recorded)

c. On December 31

Interest expense A/c Dr $13,500

To Discount on bonds payable A/c $1,500 ($12,000 ÷ 8)

To Cash A/c $12,000 ($300,000 × 8% ÷ 2)

(Being interest expense is recorded)

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4 years ago

Clarksen Company uses a process costing system. The company requisitioned $93,000 of materials for Department A and $67,000 of m

VashaNatasha [74]

Answer:

The correct journal entries should be:

Department A:

Dr Work in progress inventory 93,000

Cr Raw materials inventory 93,000

Department D:

Dr Work in progress inventory 67,000

Cr Raw materials inventory 67,000

Explanation:

Raw materials is an asset account with a debit balance, and since we must decrease it, we have to credit the amounts. Work in progress (WIP) inventory is an asset account so it has a debit balance.

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3 years ago