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WINSTONCH [101]
2 years ago
11

When a firm goes bankrupt, shareholders ______. Multiple choice question. can sue for loses cannot recover their risk capital ar

e entitled only to a fraction of their investment are entitled to help pay off debtors owed money by the firm
Business
1 answer:
TEA [102]2 years ago
4 0

In a case whereby a firm goes bankrupt, shareholders cannot recover their risk capital.

This is because they have loose alot in the investment.

<h3>What is Bankruptcy?</h3>

Bankruptcy  can be explained as legal process in which an organization that cannot repay debts to creditors may seek relief debts.

Learn more about Bankruptcy at;

brainly.com/question/21283135

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How does unemployment rate help you determine if the economy is strong or weak
RoseWind [281]
If your unemployment rate is high, that means you're making less money in all. If many people are without jobs, that means your labor force is also weak. Your employers will make a lot of cutbacks. 
6 0
3 years ago
Better Corp. (BC) began operations on January 1, Year 1. During Year 1, BC experienced the following accounting events: 1. Acqui
makkiz [27]

Answer:

Better Corp. (BC)

a. Accounting Equation

Assets                =       Liabilities       +               Equity

1. Cash $7,000                                                   Common stock $7,000

2. Cash $12,000        Bank loan payable $12,000

3. Cash $47,000                                                Service Revenue $47,000

4. Cash ($30,000)                                              Op. expenses ($30,000)

5. Cash ($8,000)                                                Cash dividend ($8,000)

6. Land $20,000 Cash ($20,000)

Assets $28,000   =  Liabilities $12,000  + Equity $16,000

b. Total assets = $28,000

Total liabilities = $12,000

Stockholders' equity = $16,000

Balance Sheet as of December 31, Year 1

Assets:

Cash                     $8,000

Land                  $20,000

Total assets      $28,000

Liabilities:

Bank loan         $12,000

Equity:

Common stock $7,000

R/Earnings          9,000

Total equity    $16,000

Liabilities and

 Equity          $28,000      

c. Total assets = $28,000

Total liabilities = $12,000

Total equity = $16,000

d. The Land will be shown on the December 31, Year balance sheet at $20,000.  The reason is that this is the acquisition cost and the land is not held for trading (no information provided).

Explanation:

a) Data and Analysis based on the Accounting Equation:

1. Cash $7,000 Common stock $7,000

2. Cash $12,000 Bank loan payable $12,000

3. Cash $47,000 Service Revenue $47,000

4. Cash ($30,000) Operating expenses ($30,000)

5. Cash ($8,000) Cash dividend ($8,000)

6. Land $20,000 Cash ($20,000)

7 0
3 years ago
At the beginning of the year, a firm had current assets of $121,306 and current liabilities of $124,509. At the end of the year,
Alex73 [517]

Answer:

E $21,903

Explanation:

Formula:

Net working capital: Current assets - Current liabilities

At the beginning of the year the net working capital was:

Net working capital: Current assets - Current liabilities

Net working capital: 121,306 - 124,509

Net working capital: -3,203

At the end of the year the net working capital was:

Net working capital: Current assets - Current liabilities

Net working capital: 122,418 - 103,718

Net working capital: 18,700

The difference between the beginning and final net working capital was:

Difference: Final NWC - Inicial NWC

Difference: 18,700 - (-3,203)

Difference: 18700 + 3,203

Difference: 21,903

4 0
3 years ago
As a result of the seizing up of the capital markets in 2008, and the shutting down of the CMBS market specifically, life insura
SCORPION-xisa [38]

Answer:

The statement given is TRUE:

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6 0
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Which aspect of zipcar's strategy makes it a practitioner of conscious marketing?
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7 0
3 years ago
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