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luda_lava [24]
3 years ago
10

Which of the following is a potential disadvantage when considering long-term loans as an option for raising capital?

Business
1 answer:
12345 [234]3 years ago
6 0

Answer:

A potential disadvantage when considering long-term loans as an option for raising capital is:

D. They require diluting ownership in organizations.

Explanation:

This potential disadvantage becomes a reality when the long-term loans are converted into shares.  At this point, the ownership in the organization is diluted.  Ownership dilution reduces the percentage of the ownership of shares in the entity.  The investment becomes less attractive to the original owners since more owners are brought on board.

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X-Mart uses the perpetual inventory system to account for its merchandise. On May 1, it sold $1,400 of merchandise on credit. Th
Eva8 [605]

Answer:

d. Debit Cost of Goods Sold $500.

c. Credit Merchandise Inventory $500.

Explanation:

The journal entry to record the cost of the sale is shown below:

Cost of Goods Sold $500

      To Merchandise inventory $500

(To record the cost of the sale)

Here the cost of goods sold is debited as it increased the expenses and credited the merchandise inventory as it reduced the assets

4 0
3 years ago
Ned has built his entrepreneurial venture into a successful business. Part of his original plan was to build the business then s
Ivan

Answer:

c.relinquish

Explanation:

-Reap means to receive a compensation.

-Harvest means to collect or gather something.

-Relinquish means to voluntarily give control of something to someone else.

-Co-opt means to accept someone in a group by decision of the other members.

According to this, Ned intends to relinquish his business because his plan was to give the control of the company to someone else by selling it so it could be taken to the next level.

7 0
4 years ago
Generally, real estate taxes for a tax year are divided between the buyer and the seller based on ______.
LenKa [72]

In general, real estate taxes are divided between the buyer and seller based on the number of days each party held (or will hold) the property during the tax year.

<h3>What is Property tax?</h3>
  • Real estate taxes and property taxes are the same things.
  • They are levied on the majority of properties in the United States and paid to state and local governments.
  • Property taxes (or real property taxes) generate funds that are generally used to help pay for state and local services.
  • In general, real estate taxes are divided between the buyer and seller based on the number of days each party held (or will hold) the property during the tax year.
  • Investors can defer taxation by selling a property investment and using the proceeds to buy another property in a 1031-like-kind exchange.
  • Landowners can borrow against their current property's equity to make other investments.

Therefore, generally, real estate taxes for a tax year are divided between the buyer and the seller based on the number of days each party held (or will hold) the property.

Know more about Property tax here:

brainly.com/question/13887483

#SPJ4

6 0
2 years ago
In addition to well-designed executive compensation packages, two other motivational forces can align the interests of managers
Harman [31]

Answer:  Let the manager know that a takeover is possible if he or she doesn’t perform well.

Explanation:

Agency problems refer to when managers take actions that benefit them instead of the shareholders of the company.

There are quite some ways to reduce the incidence of this happening and one of those is to let the manager know that a takeover is possible if they do not perform well.

Managers do not particularly like takeovers because the new owners of the company tend to get rid of the company's management who will be viewed as the reason for the company's failure or lack of growth. This will also impart on their reputations as good managers.

8 0
3 years ago
A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.
ikadub [295]

Answer: fall; rise

Explanation:

The real interest rate is the rate of interest that is received by an investor, lender or after inflation has been taken into consideration.

The real interest rate is when the inflation rate is deducted from the nominal interest rate. A reduction in the domestic real interest rate would cause a fall in net exports and a rise in the exchange rate.

5 0
4 years ago
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