Answer:
The correct answer is transaction costs.
Explanation:
Transaction costs refer to the costs incurred in order to carry out a market transaction.
The concept of transaction costs was first developed by Nobel Prize Ronald Coase who wondered why companies exist. According to Coase, transaction costs are the costs associated with using the market price mechanism and companies are created in order to reduce those costs.
Specifically, in Coase terminology, transaction costs would be the costs associated with the use and calculation of the market price mechanism, or in other words, the costs that companies incur when, instead If they use their own internal resources, they go to the market to find those products and services.
Answer:
b. Less than the effective interest rate
Explanation:
The stated discount rate on this loan is Less than the effective interest rate
As the note is noninterest-bearing note, the stated discount rate on this loan is less than the effective interest rate.
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $51.75 (3 Million × $17.25)
To Paid-in capital in excess of par value A/c $51.60
To Common shares A/c $0.15 (3 Million × 0.05)
(Being the sale of shares is made)
The remaining balance is credited to the Paid-in capital in excess of par value i.e $51.60 ($51.75 - $0.15)
All the amounts are in million
<u>Answer:</u> Inventory larceny scheme
<u>Explanation:</u>
Inventory of the firm is an asset which the employees mishandle by selling it to the third parties without the knowledge of the owner. Inventory larceny scheme means the employees takes the stock from the business and does not record the theft in the accounts of the business.
Ben Rogers and Dawn have involved themselves in Inventory larceny scheme where they take goods such as watches, fishing reels and sporting goods out of the inventory by selling it to third parties and make income for personal benefit.
