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lys-0071 [83]
3 years ago
6

Stockholders have residual claim on all assets after debt is paid and therefore have ____ risk than bondholders.

Business
1 answer:
ddd [48]3 years ago
8 0

Answer:

b) higher

Explanation:

As we know that the bondholders would be have more priority as compared with the shareholders either they have high risk as compared with the bond holders

So as per the given situation, in the case when the stockholder has the residual claim on all the assets after the payment of debt. This leads to high risk as compared with the bondholders

Therefore the correct option is B.

You might be interested in
The payroll register of Konrath Co. indicates $13,200 of social security withheld and $3,300 of Medicare tax withheld on total s
gregori [183]

Answer:

December 31,

DR Payroll Tax Expense...........................................$18,670

CR Social Security Taxes Payable..........................................$13,200

     Medicare Taxes Payable....................................................$3,300

     Federal Unemployment Tax Payable...............................$280

     State Unemployment Tax Payable...................................$1,890

Federal Unemployment tax = 0.8% * 35,000 = $280

State Unemployment tax = 5.4% * 35,000 = 1,890

5 0
4 years ago
2. Through stores that employ a team-based management approach and that offer an appealing shopping environment / experience, Wh
bixtya [17]

Answer:

differentiation strategy

Explanation:

Based on the information above, it is possible to affirm that Whole Foods is a company that uses a strategy of differentiation in its products and services, as its management approach is based on a team that offers an attractive shopping environment / experience, in addition to charging higher prices for offering high quality natural and organic foods, as well as superior customer service than its competitors.

The differentiation strategy consists of actions used by companies to make their products and services attractive to their potential audience, offering added benefits and advantages that the consumer can perceive and value, making the company more competitive and well positioned in relation to its competitors .

6 0
3 years ago
Assume that Solo Company commenced operations on January 1, 2006, and it was granted permission to use the same depreciation cal
Musya8 [376]

Answer: c. The firm's cash position in 2006 and 2007 would increase.

Explanation:

Depreciation expense is heavily dependent on the useful life of the asset. The longer the useful life, the smaller the depreciation expense because the equipment is being depreciated over a longer period.

If the useful life is reduced from 15 to 10 years therefore, the depreciation expense would increase.

The Cash position of a company is calculated by adding back the depreciation to the Net income after taxes are paid because depreciation is not a cash expense.

If the depreciation is now larger (which it is) and is added back to the Net income, the cash position will therefore increase.

6 0
3 years ago
Where can tourist obtain travel vaccinations​
baherus [9]
It would depend on what country you’re currently in.

https://wwwnc.cdc.gov/travel/page/travel-vaccines

Whenever I had to travel abroad, I’d go to a passport health Center.
5 0
3 years ago
Part E14 is used by M Corporation to make one of its products. A total of 22,000 units of this part are produced and used every
murzikaleks [220]

Answer:

(29,800)

Explanation:

The computation of the financial advantage or disadvantage is shown below:

As we know that

Financial disadvantage = Cost of making - Cost of buying

where,

Cost of making is

= [(Direct material per unit + direct labor per unit + variable manufacturing overhead per unit) × units produced] + additional segment margin

= [($4.7 + $9.30 + $9.80 + $5.20) × 22,000 units] + $34,000

= ($29 × 22,000 units ) + $34,000

= $672,000

And, the Cost of buying is

= Units produced × offered price

= 22,000 units × $31.90

= $701,800

So,

Financial disadvantage is

= Cost of making - Cost of buying

= $672,000 - $701,800

= (29,800)

6 0
3 years ago
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