Under the Best efforts method, the underwriter sells as many shares as possible but may or may not sell all of the new shares.
The best efforts method is used in the oil and gas industry to account for certain operating expenses sells as many shares as possible. Under the successful efforts method, a company only capitalizes those costs associated with the location of new oil and gas reserves when those reserves have been found.
The term best efforts refers to an agreement made by a service provider to do whatever it takes to fulfill the requirements of a contract. In finance, an underwriter makes a best efforts or good faith promise to the issuer to sell as much of their securities offering as possible. While the two parties come to an agreement for the sale of some securities, the underwriter doesn't guarantee to sell them all.
- Best efforts is a term for a commitment from an underwriter to make their best effort to sell as much as possible of a securities offering.
- It is also a general service agreement term used in place of a firm deliverable commitment.
- The opposite is a firm commitment or bought deal, in which the underwriter buys all shares or debt and has to sell it all to make money.
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Answer: D
Explanation:
Total assets changes when an account is written off under the allowance method.
The partnership most likely formed is a general partnership.
<h3>What is a general partnership?</h3>
A general partnership is when two or more people come together to form a business. The people who come together to create the business are referred to as partners.
In a general partnership, all the partners are responsible for the running the company. All the partners have an unlimited liability.
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Answer:
16.7%
Explanation:
The simple rate of return is the annual net income divided by the initial investment in the proposed investment project.
The annual net income is the annual cash flow of $8,400 minus annual depreciation charge.
annual depreciation=cost -salvage value/useful life=($36,000-$0)/15=$2400
annual net income=$8,400-$2,400=$6000
simple rate of return =annual net income/initial investment
initial investment is $36,000
simple rate of return=$6,000/$36,000=16.7%
The second option,16,7% is the correct answer
Answer:
b
Explanation:
The total benefit from building the library = 20.000 x $40 = $800,000
The total benefits exceeds the cost of building the library, so the library should be built.
Since all the residents would benefit from the library, all the residents should pay for the library. Thus, all residents should be taxed .
