Joint stock companies should not be established for the purpose of

. Choose an example of a company you could start, and decide which business structure would make the most sense for that type of

Lisa [10]

An example of a company that I could start is a travel advisory business. The best business structure that would make the most sense is an S corporation. This is because it provides protection from personal liability. It will also allow me to report my share of loss and profits of the company in my tax filings.

6 0

4 years ago

Read 2 more answers

Advantages of discounted payback period

zaharov [31]

Answer:

The main advantage of the discounted payback period method is that it can give some clue about liquidity and uncertainly risk. Other things being equal, the shorter the payback period, the greater the liquidity of the project. Also, the longer the project, the greater the uncertainty risk of future cash flows.

8 0

3 years ago

Joseph wants to take out a large loan. He has always paid his bills on time and has a fantastic credit score. He has been with h

oksano4ka [1.4K]

Joseph is probably denied credit due to his bad character, which is an essential element of the Three C's of Credit.

<h3>What are the Three C's of Credit?</h3>

To determine the credibility of a person for grant of a loan or an advance, a lender takes into consideration the Three C's of credit, which are as follows,

Character
Capacity
Capital or Collateral.

Collaterals or Capital help in determination of security of lender from borrower, in case when the borrower is unable to repay the credit. Capacity determines the ability to repay the credit.

Character, on the other hand, helps in determination whether the customer or the borrower's behavior, and the qualities of his or her character in the society.

Hence, the three C's of credit are explained above.

Learn more about the Three C's of Credit here:

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7 0

2 years ago

Vaughn’s standard quantities for 1 unit of product include 5 pounds of materials and 1.0 labor hours. The standard rates are $4

Lilit [14]

Answer:

$31.00

Explanation:

Calculation to determine what The total standard cost of Vaughn's product is

Using this formula

Total standard cost of product=(Material Standard rate per pound × pounds of material) + (Labor standard rate per hour × labor hours) + (Standard overhead rate x labor hours)

Let plug in the formula

Total standard cost of product=[($4 × 5) + ($5 × 1.0)]+ ($6 × 1.0)

Total standard cost of product=($20+$5)+$6

Total standard cost of product= $25.00 +$6

Total standard cost of product= $31.00

Therefore The total standard cost of Vaughn's product is $31.00

6 0

3 years ago

a firm has a pure discount loan with face value of $75,000 that is due in six months. the assets of the firm are currently worth

ioda

As you owns stock in a firm that has a pure discount loan due in six months. The loan has a face value of $70,000. The assets of the firm are currently worth $96,000. The stockholders in this firm basically own a <u>call option</u> on the assets of the firm with a strike price of <u>$70,000</u>.

<h3>What Is a Call Option?</h3>

Basically, a call options refers to a financial contracts that give the option buyer the right, but not an obligation to buy a stock, bond, commodity or other asset or instrument at a specified price within a specific time period.

<h3>What is a Strike price?</h3>

On an options contract, a strike price refers to the the price at which the underlying security can be either bought or sold once exercised. It is also known as the exercise price and it is a key feature of an options contract.

In conclusion, as the firm has a pure discount loan with face value of $75,000 which is due in six months whereas its assets are worth $96,000, then, we will say the firm have a call option with a strike price of $96,000.