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3 years ago

What are the main issues to be addressed in a business code of ethics required by the Securities and Exchange Commission

Business

1 answer:

Hatshy [7]3 years ago

7 0

Answer:

Conflicts of interest, full and fair disclosures, legal compliance, internal reporting of code violations and accountability.

Explanation:

The main issues to be addressed in a business code of ethics as required by SEC securities and exchange commission are conflicts of interest, full and fair disclosures, legal compliance , internal reporting of code violations and accountability.

With regards to the above, businesses are expected to fully disclose conflict of interest if there is any to SEC. The reason is to monitor the activities of the business whether it has deviated from its original plan. Again, it is expected of business to completely disclose facts as it relates to its dealings with members of the public in a fair manner.

Again, a business as required by SEC must comply legally to the regulations as instituted by relevant governing bodies. A business must also be accountable at all times for its actions or inactions.

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he value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of two elements

nekit [7.7K]

Answer:

TRUE

Explanation:

Using the Gordon Growth Model, we can adequately demonstrate that the dividend and price of a share are both components of the cashflow to be considered in share valuation.

Price per share is found to be D(1) / (r - g)

where:

Do = Dividend now

D1 = Dividend in year 1

g = growth

r = required return

So we see that the market price of a share which determines the market capitalization of a company is predicted by a growth in dividends. So the benefits of holding a share will not only depend on how much the share is sold now as against how much it can be sold in the future (in order to make a gain), but also how much you can be earning until such sale occurs.

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3 years ago

Jones company lends Alabater Inc. $85,000 on August 6, 2018. This loan was memorialized with a signed note receivable with a rep

Tju [1.3M]

Answer:C) $2,125.

Explanation:

Interest = Principal x rate x time (period)

using days in a year = 360 days

Interest = $85,000 X 10% x 90/360

=$2,125

Therefore, Alabaster Inc, must repay the $85,000 principle and $2,125 in interest

8 0

3 years ago

Kim hired Gold Contracting to build a pool and a fancy gazebo in her backyard. The plans were complex and required expert workma

Rufina [12.5K]

Answer:

B. Kim will win, because the bonus is a reward for work they have already performed, which is past consideration and cannot be used to create a contract.

Explanation:

In order for a contract to be enforceable, consideration must be exchanged between both parties. In this case, Kim made a promise that included consideration ($3,500) but Gold didn't exchange of give anything back. The swimming pool is already finished and it represents another different contract.

Another example would be a boss telling a subordinate that he/she will receive a bonus for having worked 10 years in the firm. The employee already got paid for working the 10 years, so there is no actual exchange of new consideration.

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2 years ago

Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at th

Sliva [168]

D.
221,500 why? because thats the answer

3 0

3 years ago

Read 2 more answers

Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,0

Tatiana [17]

Answer:

See explanation

Explanation:

Armstrong Co.

Multi-step Income Statement

For the year ended, December 31, 20YY

Sales $755,000

Less: Cost of merchandise sold (330,000)

Gross Profit $425,000

Less: Operating expenses

Administrative expenses $35,000

Selling expenses $50,000

Total operating expenses $85,000

Income from operation $340,000

Other revenue and expenses:

Rent Revenue $25,000

interest expense ($30,000)

Total other revenues (expenses) $(5,000)

Income before taxes $335,000

Less: Income Tax 0

Net Income (loss) $335,000

That is the appropriate way to prepare a multi-step income statement

3 0

3 years ago