Answer:
Option (B) is the right answer.
Explanation:
According to the investment company Act of 1940, the investment companies are those companies whose main business is to gathers investment capital to invest them in marketable securities.
Hence According to the scenario, the most appropriate answer is option (B).
While the other option is incorrect because of the following reason:
- Brokers/dealers can not be considered as an investment company because they are not the company.
- Pooled investments in metals are not an investment company but considered as the commodity pool.
- Insurance companies are also not investment companies.
It is a false statement that the existence of financial middlemen and financial intermediaries increases the efficiency of the financial market
<h3>Who are financial intermediaries?</h3>
This refers to those entities that acts as the middleman between two parties in a financial transaction such as a commercial bank, investment bank, mutual fund, or pension fund. They offer a number of benefits to the average consumer such as safety, liquidity, and economies of scale involved in banking and asset management.
However, It is a false statement that the existence of financial middlemen and financial intermediaries increases the efficiency of the financial market because only the buyers and seller influence an efficiency of the financial market.
Read more about financial intermediaries
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Answer:
Cost of goods sold : $ 120.000
Explanation:
income before taxes : 63000 / 0.7 = 90000
(+) expenses 90.000
Total 180.000
(-) net sales 300.000
= cost of goods 120.000
Answer:
c. remuneration of personnel
Explanation:
Henri Fayol developed the fourteen principles of management.
One of the fourteen principles being, Remuneration of personnel.
Fayol was of the opinion that in order to extract the best performance from employees, appropriate remuneration system must exist in an organization.
This meant emphasizing on employee satisfaction by following fair remuneration practices coupled with adequate incentive system which rewards good performance.
In the given case, the pharmaceutical company offers performance based incentives in the form of quarterly as well as annual bonuses in addition to an existing profit-sharing plan for employees. This is an example of Fayol's principle of Remuneration of personnel.
Answer:
The credit entry for the issue of 5000 shares is:
Cr Treasury stock $100,000
Cr Paid-in capital from treasury stock $35,000
Explanation:
The par value of the common stock issue($20 per share) is credited to treasury stock account, while the excess of issue price of $27 over the par value of $20, $7 per share is credited to paid-in capital from treasury stock
The full double entries for the issue of 5000 shares is as follows:
Dr Cash ($27*5000) $135,000.00
Cr Treasury stock($20*5000) $100,000
Cr Paid-in capital from treasury stock($7*5000) $35,000
Under International Financial Reporting Standards, the credit entries would be that par value is credited to equity share capital and the excess credited to share premium account.
