Answer:
1) UNDERWRITE involves the act of taking on any risk that might be related with the issue of a new security.
2. BEST EFFORTS is the responsibility of sharing a security without transferring the risk associated with the new issue from the company to the investors.
3. UNDERWRITING SYNDICATE involves a group of investors formed to share the risk of a security offering.
4.UNDER PRICING is the process of setting the price of a new security slightly below the market value to ensure a receptive sale.
5. AFTERMARKET is a secondary market where securities are traded after its initial offering to the public.
6.AGENT is one who sells or places an asset for another party.
7. SHELF REGISTRATION permits large companies to file one comprehensive statement with the Securities and Exchange Commission (SEC) outlining their financial plans for the next two years.
8. LEVERAGE BUYOUT occurs when either management or another investment group borrows the needed cash to rebuy all traded shares from the shareholders.
9. RESTRUCTURING involves the divisions and products are sold and assets redeployed into better yielding areas.
10. PRIVATIZATION is a situation Investors that take a company public, the investment bankers sell companies previously owned by governments.
Answer: indenture
Explanation:
The bond indenture is a legal contract that or covers a purchase obligation or a debt.
Therefore, the legal document identifying the rights and obligations of both the bondholders and the issuer is called the bond indenture. This document describes the number of bonds authorized, their par value, and the contract interest rate.
Answer:
b. 50,000
Explanation:
According to the given situation, the computation of impairment loss is shown below:-
The Amount of impairment loss to be recognized at December 31, 20X8 is
= Net assets - Fair value of reporting unit
= $310,000 - $260,000
= $50,000
Therefore we applied the above formula to determine the amount of impairment loss to be recognized at December 31, 20X8.
Answer:
Demand decreases
Explanation:
Substitute goods are products that can be used in place of each other. Goods are described as substitutes if a customer can use them interchangeably and get equal or almost the same satisfaction. Tea and coffee will be substitutes if a customer can consume either of them and be happy.
If the price of a substitute good declines, customers will prefer consuming it instead of the other product. The other product's demand will decrease due to a change in customer preferences as a result of a lower price.
