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3 years ago

Definition: This is when an owner is fully responsible for the debts and losses of a company.

Business

1 answer:

lorasvet [3.4K]3 years ago

4 0

Answer:

is it a manager??

Explanation:

You might be interested in

What do you think is the most important skill a judge can possess

Airida [17]

Answer:

The decision making skill because it's hard for a judge to make the right decision.

4 0

3 years ago

Consider a firm with an EBIT of $500,000. The firm finances its assets with $2,000,000 debt (costing 6 percent) and 50,000 share

Schach [20]

Answer:

EPS is reduced by $1.92 and 42%

Explanation:

EBIT $500,000

Interest Expense ($120,000) ($2,000,000 x 6%)

EBT $380,000

Tax 40% ($152,000)

Net Earninig $228,000

Outstanding stock = 50,000

EPS = $228,000 / 50,000 = $4.56 per share

Change in Capital Structure.

EBIT $500,000

Interest Expense ($60,000) ($1,000,000 x 6%)

EBT $440,000

Tax 40% ($176,000)

Net Earninig $264,000

Outstanding stock = 50,000 + 50,000 = 100,000

EPS = $264,000 / 100,000 = $2.64 per share

Change in EPS = $4.56 - $2.64 = $1.92 per share

Change in EPS = $1.92 / $4.56 = 0.42 = 42%

5 0

3 years ago

Capacity conciderations in a hospital

Masja [62]

Capacity conciderations in a hospital are:

Productions and Operations Management

4 0

3 years ago

Suppose the Fed decides it needs to pursue an expansionary policy. Assume people hold no cash, the reserve requirement is 50 per

DENIUS [597]

Answer:

Because the current money multiplier is 2, the Fed would BUY $500,000 worth of bonds, INCREASING the monetary base and so increasing the money supply by $1 million.

Explanation:

if the Fed wants to increase the money supply by $1 million, then it would need to purchase US securities worth $500,000. The formulas used to calculate the impact of the Fed's operations are:

increase in money supply = additional funds x money multiplier

money multiplier = 1 / reserve ratio = 1 / 50% = 2
desired increase in money supply = $1 million

$1,000,000 = additional funds x 2

additional funds = $1,000,000 / 2 = $500,000

6 0

3 years ago

Gale Corporation leases the printing equipment it uses. The terms of the lease require the monthly lease payments to be made at

matrenka [14]

Answer: TRUE

Explanation: Annuity is a financial term or financial Product which enabled individuals to invest funds to gain streams of income when the terms agreed have been met.

Annuity have basically two phases which includes the ACCUMULATION PHASE(the phase where the investor is still finding the Annuity) and a ANNUITISATION PHASE(the phase from when the Stream of payment starts to be paid by the financial institution).

Annuities can be made to be very flexible in which it can be for a FIXED,UNTERMED, DEFERRED etc.

7 0

3 years ago