Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN: 9781337485913
Author: BROOKS
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
If you were to start a business, what ownership form would you choose? Wjat factors might affect your choice?
If you have the chance to invest in the stock market, what
company will you invest in and why? Explain your methods or
steps in choosing that
company.
Choose the letter of the correct answer:
1. In which of the following situations would an investor likely account for stock ownership in an investee using the equity method?
A. The investor and the investee have many transactions with each other
B. The investor owns 15 percent of the investee’s stock
C. The investor and investee reside in close proximity to each other
D. The investor has significant influence over the investee’s management policies
2. When the cost model/method is used to account for an investment, which of the following would not result in an adjustment to the amount recorded in the investment account?
A. The investee declares a regular dividend
B. The investor sells some of the stock
C. The investee declares a liquidating dividend
D. The stock’s market value decreases to a point where is it below the investor’s cost
Knowledge Booster
Similar questions
- Define the following terms: ‘stakeholder’; ‘shareholder’ and ‘stakeholder analysis’.Using a named real company of your choice, demonstrate how you would apply thestakeholder analysis process to identify the company’s stakeholder groups andevaluate their needs and influence.arrow_forwardWhen purchasing a company's stock, what would be your primary factors in valuing that stock?arrow_forwardWhat effect would the calculation performed have in terms of shareholder value? In other words, suppose the company’s goal is to maximize shareholder value. How will doubling outstanding shares support or inhibit that goal? Be sure to justify reasoning.arrow_forward
- When an individual owns directly stocks of the company, he has: Group of answer choices a. Direct Financial Interest b. Indirect Financial Interest c. Both Direct and Indirect d. Neither Direct nor Indirectarrow_forwardWhat kind of ownership structure would you select if you were starting a business? Depending on your pick, what elements could influence you?arrow_forwardWhich factors influence the dividend policy of a company? Also please locate and briefly post the dividend policy of a publicly held company of your choosing and discuss the positive and negative aspects of the policy. What assumptions about the financial health of the business can you derive from the dividend policy? Would the dividend policy make you more or less likely to invest in the company?arrow_forward
- What effect would the calculation performed have in terms of shareholder value? In other words, suppose the company’s goal is to maximize shareholder value. How will the rate of return on equity (increase dividend per share by 1.75) support or inhibit that goal? Be sure to justify reasoning.arrow_forwardIf a large group of investors tend to buy a company's stock, an individual might follow too. This statement is an example of: Select one: Self-attribution Mental Accounting Herd Behavior The disposition effects Anchoringarrow_forwardHow does the percentage of ownership a company has in an investment effect them? Would the percentage of ownership be a big factor in your decision whether or not to invest in a company? Please explain.arrow_forward
- which one is correct please confirm? QUESTION 2 Dividend policy can affect the value of the firm for which of the following reasons? a. Personal taxes b. Flotation costs c. Shareholder transaction costs d. All of these are correctarrow_forward3. What are the stages in organizing a corporation? 4. What are the basic rights of a shareholder? 5. "what are the considerations that may be received in exchanged for share capital? What are the measurement bases for such exchanges? 6. Differentiate an ordinary share capital from a preference share capital.arrow_forwardPlease fill out the table attached and give your opinion on which alternative is preferable (The company’s management wants to finance the expansion in a way that will serve the best interests of present stockholders).arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:CengageEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT