Answer: Debt being less risky than equity and interest payments being tax deductible.
Explanation: Debt securities are the securities having fixed interest rates and a fixed time period to maturity. The debt holders are not considered owners of the company but rather they are the the creditors.
Debt is considered the cheapest source of finance for a number of reasons the main of which is the interest payments on debt could be deducted as expense while computing taxable income .
Answer: A) Many professional women step out of the workforce early to start their own companies.
Explanation:
There are several human resource management challenges such as compliance with organization rules and laws, adaptation to innovation, recruitment challenges etc.
In the context of human resource management challenges, the most likely true option is that many professional women step out of the workforce early to start their own companies. Unlike their male counterparts who can stay for a very long time, the reverse is usually the case with women.
Answer:
D
Explanation:
Liquidation is when the business closes down or dissolves which means the business will not continue any further. Firstly all the assets are sold at their market value which differs from the actual cost or the book value and all the liablities are paid for (or compensated for). After paying all the due balances and receiving all receivables the gain or loss is divided amongst the partners according to their partnership agreement which states the profit/loss sharing ratio. in case of no agreement, the profit/loss is shared equally.
Answer:
Letter of Credit (LC)
a) Mbo Limited's bank can issue a letter of credit to Tiffany Anderson Group Ltd.'s bank a credit guarantee by which Mbo's bank guarantees that Mbo Limited will settle Tiffany Anderson Group Ltd in full for the amount involved in their trade relationship. It is usually used by importers and exporters to settle trade credit. It is the most acceptable means of settling debts across national boundaries.
b) A diagram is attached. The procedures are detailed below:
A. A Sales Contract is established between the seller (exporter) and the buyer(importer).
B. The importer makes a request to its bank for issuance of letter of credit.
C. The importer’s bank issues a letter of credit to the exporter’s bank.
D. The exporter’s bank advises on the letter of credit to the exporter.
E. The exporter presents export documents (bill of lading and invoice) to its bank.
F. The exporter’s bank delivers the documents to the importer’s bank.
G. The importer’s bank debits the account of the importer for the stated amount after confirming that the documents are in order.
H. The importer’s bank pays the purchase price to the exporter’s bank.
I. The exporter’s bank credits the exporter’s bank to show payment. This ends the transaction.
c. The letter of credit guarantees both the Mbo Limited and Tiffany Anderson Group Ltd. It guarantees and ensures that payment for goods are not paid to Tiffany Anderson Group Ltd until there is evidence that the correct goods and quantity have been shipped by Tiffany Anderson Group Ltd (through the bill of lading). It also assures Tiffany Anderson Group Ltd of payment for shipped goods since the documents cannot be released to Mbo Limited unless Mbo Limited's account had been debited and the money transmitted to Tiffany Anderson Group Ltd through its bank.
Explanation:
As above.
