Answer:
The correct answer is letter "D": may sell some of your securities to repay the margin loan.
Explanation:
A Margin Call is issued when the equity in a margin account falls below a certain level. In the U.S. this level is set by the Federal Reserve (Fed) Board "Regulation T". Many brokers have their margin requirements known as "house requirements" usually with maintenance levels of 30 to 40%.
When a margin account falls below the margin limit and the trader ignores this, the broker can sell some of the securities of the trader to cover the margin losses.
Answer:
TRUE
Explanation:
According to Mike Peng and his book "Global Business", these indicators help to identify problems such as: principal-principal conflicts (problems between controlling shareholders and minority shareholders), expropriation and tunneling ( when managers from the controlling family divert resources for personal use or family use).
Answer:
a. I Disagree with Faith's method of handling this situation because she has not followed the internal control principle of safeguarding of assets. Stealing is a serious issue. An employee who can justify taking a box of tea bags can probably justify “borrowing” cash from the cash register.
b. I Agree with Faith's method of handling this situation because Faith has followed the internal control principle of assignment of responsibility by making one employee responsible for the cash drawer and followed the internal control principle of segregation of duties (preparing the orders) from the accounting (taking orders and payments).
c. I disagree with Faith's method of handling this situation because Faith has not followed the internal control principle of segregation of duties. It is true that faith has made one employee responsible however after cash counting another employee or Faith himself remove the cash register tape and compare the balance with cash drawer for effective internal control. Also, Faith’s standard of no mistakes may encourage the cashiers to overcharge a few customers in order to cover any possible shortages in the cash drawer.
Answer:
22.5
Explanation:
According to the given situation, the computation of the number of kanbans is shown below:-
Number of kanbans needed = [(Demand × Lead time) + (Demand × Safety stock)] ÷ Kanban size
= (750 × 0.5) + (750 × 0.25) ÷ 25
= 22.5
Therefore for computing the number of Kanbans we simply applied the above formula by considering all items
