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Igoryamba
2 years ago
13

Red when choosing a form of ownership

Business
1 answer:
siniylev [52]2 years ago
4 0

Answer:

see below

Explanation:

1. Private Limited Company

A private limited company is an acknowledged legal entity whose shares are held privately by the founders. The shareholders are the owners. They are not allowed to trade their shares to the public through the security exchange. SHINING STAR BUS COMPANY (PTY) Ltd is currently a limited private company.  Transfer of shares has to be between the existing shareholders, the bus company, and requires authorization. The shareholders have limited liability to the company's debts and are entitled to a share in the company profits.

2. Public Limited Company

A public limited company is recognized as a legal and separate entity from its owners. Unlike a private limited company, the shares of a public limited company are traded in the security exchange markets. It means ownership of a public company is open to the public. The management of SHINING STAR BUS COMPANY (PTY) Ltd wants to convert it to a public limited company. After the conversion, its shares will be traded at the Johannesburg Security Exchange(JSE).

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In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hitec
Andre45 [30]

Answer:

Price to be paid now = $52.89

Explanation:

<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>

T<em>he stock would be held for just a period, hence we would use the single period return model. This is given as follows:</em>

Price now  = D/(1+r) + P×(1+r)

Dividend , r - rate of return, P -year-end price of stock

Dividend = 4.35, r-16%, P- 57

Price = 4.35/(1.16)  + 57/(1.16)= $52.89

Price to be paid now = $52.89

7 0
2 years ago
A company is trying to decide whether to sell partially completed goods in their current state or incur additional costs to fini
Ghella [55]

Answer:

b-the costs incurred to process the units to this point

Explanation:

Since in the question it is given that the company want to decide whether to sell partially completed goods or should incurred extra cost in order to finished the goods and sells them as a completed unit

So there should be the decision regarding selling price for the units that are completed, the selling price for the units that are partially completed and the cost i.e to be incurred for finishing the units

8 0
3 years ago
If an increase occurs in the demand for the output of industry A, we would expect all of the following to happen except:A. an in
ruslelena [56]

Answer:

The correct answer is option B.

Explanation:

The total revenue and profits of the industry as the price level  increases with increase in the demand.

When there is an increase in the demand for the output of an industry, that industry will increase the production to match the increase in the demand. The increase in production will cause output level to increase.

In order to produce more output the industry will require more inputs, so the demand for inputs will increase.

An increase in the demand for inputs will be accompanied by increase in their prices.

There will not be any decline in the price of inputs.

3 0
3 years ago
Runyon Inc. reported the following results from last year’s operations: Sales $ 16,800,000 Variable expenses 12,230,000 Contribu
Andre45 [30]

Answer:

Turnover is equal to 2.40

Explanation:

Consider the following equation to calculate the turnover

Turnover = Sales /Average operating assets

= 16.800.000/7000000=

2.4

<em />

<em>Turnover is an accounting concept that calculates how quickly a business conducts its operations.</em>

 

4 0
3 years ago
Debbie, a popular wedding photographer, is able to photograph a wedding every Saturday of the year. She charges couples $4,000 f
rosijanka [135]

Answer:

c. $1,800

Explanation:

Economic cost calculates what is gained or lost when a particular activity is chosen over another activity.

It incorporates the opportunity cost of taking a particular activity into its calculation of cost.

The economic cost of Debbie taking the picture of her niece is :

$4000 - $2200 = $1800

I hope my answer helps you

6 0
3 years ago
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