All categories

3 years ago

Match the given distinctiveness to the type of equity or debt finance that is available for a business.

Business

1 answer:

nata0808 [166]3 years ago

5 0

Answer:

See below

Explanation:

Common stock

The equity holders have a right to vote on corporate policy. In the case of liquidation, common stockholders are last in line in the distribution of the company's assets.

Preferred stock

The equity holders are paid dividends at regular intervals. Preferred stockholders have a priority in dividends payments over common shares but have no voting rights.

Retained earnings

The profit is used in the business. Retained earnings are profits that a company's management opts to distribute to shareholders as dividends.

Senior debt

The lenders are always paid within a predetermined time. Senior debts are low risk as they are given priority over other debts in repayment.

Subordinate debt

The debt carries more risk and is not the first in line to be paid. In the event of liquidation, subordinate debts are considered last in order of payment.

You might be interested in

3. Management activities include all of the following except:

7nadin3 [17]

Answer:

Explanation:

Management activities include Decision making

6 0

3 years ago

Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 6 comma 800 items in its invento

Nitella [24]

Answer:

99 items

Explanation:

Total number of items = 6,800

The number of items per type is:

$A= 6,800*0.08\\A=544\ items\\B= 6,800*0.34\\B=2,312\ items\\C= 6,800*0.58\\C=3,944\ items$

The number of items of each type counted per day is:

$n_A=\frac{544}{20}\\n_A=27.2\\n_B=\frac{2312}{59}\\n_B=39.2\\n_C=\frac{3944}{121} \\n_C= 32.6\\$

The total number of items counted per day is:

$n = n_A+n_B+n_C=27.2+39.2+32.6\\n=99\ items\ per\ day$

6 0

3 years ago

If the marginal product of labor is increasing, the marginal cost of output must be

SVETLANKA909090 [29]

Your answer would be, If the Marginal Product of labor increases/rises, The Marginal Cost of Output FALLS.

If the Marginal Product of labor Falls, The Marginal Cost of Output RISES.

Hope that helps!!!

4 0

3 years ago

How did speculative investing weaken the stability of the stock market

Lena [83]

The main way in which speculative investing weakened the stability of the stock market was that it it led to high overvaluation of a company's worth, meaning that people began to divest quickly, leading to a run on the banks.

7 0

3 years ago

On January 1, 2013, Craig Company paid the premium on a four-year insurance policy in the amount of $12,000. At that time, the f

Dima020 [189]

Answer:

option (C) $3,000

Explanation:

Data provided:

Policy duration = 4 years

Policy amount = $12,000

Date on which premium is paid = January 1, 2013

Date on which entry is adjusted = December 31, 2015

Now,

The time passed between January 1, 2013 to December 31, 2015 = 3 years

Therefore,

Amount to be recognized as insurance exp. on December 31, 2015

= $\$12,000\times\frac{\textup{Time elapsed}}{\textup{Total policy duration}}$

= $\$12,000\times\frac{\textup{3}}{\textup{4}}$

= $9,000

Thus,

The balance in the prepaid insurance account = $12,000 - $9,000 = $3,000

Hence,

The correct answer is option (C) $3,000

3 0

3 years ago