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Vlad1618 [11]
3 years ago
14

4. explain the main advantage of retained profits as a source of finance

Business
1 answer:
Rom4ik [11]3 years ago
5 0

Answer:

The classic explanation of the advantages of high retained profit is that they: increase stock value. assure corporate stability. provide funds for research and expansion without increasing corporate debt.The portion of profits not distributed among the shareholders but retained and used in business is called retained earnings. It is also referred to as ploughing back of profit. This is one of the important sources of internal financing used for fixed as well as working capital.

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E-mail is usually a formal mode of business communication. Please select the best answer from the choices provided T F.
Phantasy [73]

Answer:

F

Explanation:

No because at those formal period email wasn't created the formal mode of business communication was letter through the use of type writters

8 0
2 years ago
Lisa sells business property with an adjusted basis of $237,800 to her son, Alfred, for its fair market value of $190,240.
mylen [45]

Answer:

a. Lisa's realized and recognized gain or loss is unknown

b. Alfred's recognized gain of $71,340 if he subsequently sells the property for $261,580

Alfred's recognized  loss of $35,670 if he subsequently sells the property for $154,570

Explanation:

a. We do not know the amount Lisa costed to buy this business property, thus can't define her gain or loss.

b. Alfred cost $190,240 to buy this property, the he will gain if sell higher or lost if sell lower.

The gain $71,2340 = selling price $261,580 - cost $190,240

The loss $35,670 = selling price $154,570 - cost $190,240

6 0
3 years ago
You are comparing two investment options, each of which will provide $15,000 of total income. Option A pays five annual payments
Nezavi [6.7K]

Answer:

A

Explanation:

Because as per time the value of money the future cash holds are discounted at discount rate yo find the present Worth, thus the higher value of early present cash flows creates higher present value compared to lower value of early cash flows

6 0
3 years ago
Larsen Corporation reported $200,000 in revenues in its 2021 financial statements, of which $66,000 will not be included in the
Anastaziya [24]

Answer:

$16,500

Explanation:

The computation of the deferred income tax liability for the year 2021 is shown below:

= Amount not included in tax return × enacted tax rate for 2022 year

= $66,000 × 25%

= $16,500

Simply we multiplied the amount not included with the enacted tax rate for 2022 year so that the correct amount could come

And, we ignored the other information given in the question

5 0
3 years ago
Interview Notes Olivia is single, 66 years old, and not blind. She paid all the cost of keeping up her home. She earned $55,000
Sergeeva-Olga [200]

Answer:

$2000.

Explanation:

Please see attachment

3 0
3 years ago
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