We would call this event a <u>leveraged buyout (LBO)</u>.
<u>Explanation:</u>
A leveraged buyout is the attempt of buying a company primarily through borrowing. This purchasing involves combination of both equity and debt. The funds borrowed are used to buy out the stockholders in the company. The employees, managers, or investors now become the owners of the firm. The firm is taken private, when the managers buy all of the stock of the firm and take it off the open market.
In the above scenario, the employees of San Simeon company purchases the firm from their current owners by borrowing large sum of money.
Answer:
<u>liability</u>, <u>asset </u>
Explanation:
Liability refers to a future obligation in monetary form which must be discharged by a business. Liabilities are classified on the basis of due period into current and long term. For instance payment due to a supplier, loan for repayment.
Assets on the other hand refer to something which yields future economic benefits. Assets could be in tangible fixed form, movable form or intangibles such as Goodwill.
In the given case, from the purpose of bank, acceptance of deposits constitutes a liability since the bank has to pay such deposits whenever required by the customer.
Similarly, lendings by a bank represent an asset since the bank would receive such sum coupled with interest at a future date.
Answer:
Net income= -$34,200
Explanation:
Giving the following information:
Beta Division:
Sales= $580,000
Variable expenses= $301,600
Traceable fixed expenses of $186,500.
Income= 91,900
Alpha Division:
Sales of $510,000
Variable expenses of $178,500
Traceable fixed expenses of $222,100.
Income= 109,400
The total amount of common fixed expenses not traceable to the individual divisions is $235,500.
<u>We need to deduct from the income of each division the not traceable fixed costs.</u>
Net income= 91,900 + 109,400 - 235,500
Net income= -$34,200
Answer:
Results are below.
Explanation:
<u>First, we need to calculate the selling price per composite unit:</u>
<u></u>
selling price per composite unit= 1,280*0.6 + 530*0.4
selling price per composite unit= $980
<u>Now, the unitary variable cost per composite unit:</u>
Variable cost per composite unit= 780*0.6 + 280*0.4
Variable cost per composite unit= $580
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per composite unit
Break-even point in units= 150,000 / (980 - 580)
Break-even point in units= 375
<u>Finally, the number of units per product:</u>
Desks= 375*0.6= 225
Chairs= 375*0.4= 150
Answer:
C. To find out if there is a change in the actual number of goods, services, and structures produced from one year to the next
Explanation:
Real GDP calculates the monetary value of all goods and services that a country produce within one year after adjusting it to inflation or deflation.
Knowing Real GDP often used as a measurement to find out the economic growth of a country. If the Real GDP is increased, it indicates that the people in that country become more productive and it is most likely that their disposable income is also increased.
