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kati45 [8]
3 years ago
9

The board members of Company A, Inc. are considering purchasing a warehouse for the storage of inventory for the company. During

the consideration of different warehouses from the realtor, the board votes to purchase the warehouse in Ohio as a centrally located warehouse to their Michigan headquarters. During the discussion, not many options were discussed regarding each property, and the board rushed the process. One of the board members stated that the process did not require much time because they relied on the information and reports from the realtor. It is later discovered that a board member, Lisa, owned 10% of the Ohio Warehouse that the company purchased. She has stated that the warehouse was 10% hers as a result of a property settlement years ago, and she did not see her small interest ownership as being something to the level that she was going to greatly benefit from the sale, so it was nothing she felt a concern about. Some of the shareholders feel this decision may not have been in the best interest for the company and are considering legal action against the board.
a. Explain what defense the board members have regarding their decision in this situation to purchase the Ohio warehouse.
b. Explain what defense the board member, Lisa, would be able to raise regarding her 10% ownership interest of the Ohio warehouse?
c. If you had to advise the board on what would have been the best process to handle this warehouse decision, knowing the facts now and that Lisa was an owner of the Ohio warehouse, what would have been the proper method for the board to approve this warehouse purchase?
Business
1 answer:
Lerok [7]3 years ago
3 0

Answer:

The board members of Company A, Inc. are considering purchasing a warehouse for the storage of inventory for the company. During the consideration of different warehouses from the realtor, the board votes to purchase the warehouse in Ohio as a centrally located warehouse to their Michigan headquarters. During the discussion, not many options were discussed regarding each property, and the board rushed the process. One of the board members stated that the process did not require much time because they relied on the information and reports from the realtor. It is later discovered that a board member, Lisa, owned 10% of the Ohio Warehouse that the company purchased. She has stated that the warehouse was 10% hers as a result of a property settlement years ago, and she did not see her small interest ownership as being something to the level that she was going to greatly benefit from the sale, so it was nothing she felt a concern about. Some of the shareholders feel this decision may not have been in the best interest for the company and are considering legal action against the board.

a. Explain what defense the board members have regarding their decision i

Explanation:

I don't know

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4 years ago
On March 1, Retro Inc. reported a balance in Supplies onf $200. During March, the company purchased supplies for $950 and consum
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Answer:

stockholer's equity will be overstated by $800.

Explanation:

The adjustment required is to record $800 of supplies used as an expense, hence, by carrying out the adjustment, net income is overstated by $800 so also retained earnings and shareholders' equity.

In other words,the balance that would be left in supplies is opening balance of $200 plus purchase of supplies which is $950 minus the supplies used.

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Option B is wrong the balance expected is $350 and the balance without adjustment is $200,that is $150 understatement not $350

4 0
3 years ago
Weisbro and Sons common stock sells for $24 a share and pays an annual dividend that increases by 4.9 percent annually. The mark
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Answer:

The amount of the last dividend paid by this company was $1.30/share.

Explanation:

Hi, in order to find the last dividend paid by the company, we need to use the following equation.

Do=\frac{Price(r-g)}{(1+g)}

Where:

Do = Last dividend paid

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So, everything should look like this.

Do=\frac{24(0.106-0.049)}{(1+0.049)} =1.304099

Therefore, the last dividend paid by the company was $1.30/Share.

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Market socialism, sometimes known as liberal socialism, is an economic system that strikes a balance between free enterprise and socialist planning. In this system, businesses are publicly owned, but output and consumption are determined by the market rather than by governmental planning.

In real life, Market socialism components have been present in a number of different economies. A version of market-based socialism, based on socially owned cooperatives, workers' self-management, and market allocation of capital, is usually regarded as having existed in the former Socialist Federal Republic of Yugoslavia.

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2 years ago
This a type of unemployment that always exists and are relatively stable over time, including seasonal, structural, and friction
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Also some people might possess skills that are not necessary in the labor market. The natural unemployment is still in the economy even when there is technological advancement, industry expansion. New labor forces enter into market every year and people search jobs for better opportunities.

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