The principal difference between public and privately held companies is that public companies have shares that can be publicly traded on a stock market. A privately held company might become a publicly held company by conducting an initial public offering, which is the offering of shares of the company to the public.
Answer:
64%
Explanation:
Commercial banks have been found to provide most of the credit needs of small businesses. So small business owners are more likely to get a loan from a commercial bank close to them.
Commercial banks however tend to be reluctant when the economy is stagnant. Mostly small businesses in an economy that is slow have challenges repaying loans collected.
However funds have been made available for small business and are made available primarily through commercial banks
Answer:
c. $24,990
Explanation:
The Term 2/15 net 45 mean 2% cash discount is offered if the payment is made within 15 days otherwise the credit period is 45 days. There is no after 15 days of sale.
Amount of Sale = $25,500
Discount Rate = 2%
The Pound Co. paid the invoice within the discount period. They are eligible to receive the 2% discount on sale value.
Discount Amount = $25,500 x 2% = $510
Net Sales amount in this transaction = $25,500 - $510
Net Sales amount in this transaction = $24,990
Answer: Please refer to Explanation
Explanation:
When recording Equipment here the value of the shares at current value should be used and not the cost of the equipment.
DR Equipment $162,250
CR Investment in Pharaoh Company $137,500
CR Gain on Exchange $24,750
(To record Exchange of shares for Equipment)
Workings.
Investment in Pharaoh Company.
= 2,750 shares * $50(purchase price)
= $137,500
Gain on Exchange
= 2,750 shares * (Market Price - Purchase Price)
= 2,750 shares * ( 59 - 50)
= $24,750
Equipment.
= Investment in Pharoah Company + Gain on Exchange
= 137,500 + 24,750
= $162,250
