b. Two key advantages of the corporate form over other forms of business organization are unlimited liability and limited life. c. A corporation is a legal entity that is generally created by a state; its life and existence is separate from the lives of its individual owners and managers. d. Limited liability of its stockholders is an advantage of the corporate form of organization, but corporations have more trouble raising money in financial markets because of the complexity of this form of organization. e. Although its stockholders are insulated by limited legal liability, the corporation's legal status does not protect the firm's managers in the same way; i.e., bondholders can sue its managers if the firm defaults on its debt, even if the default is the result of poor economic conditions.
The investment is 13%, most of this is in non-residential investment. This consists of business equipment, such as software, business equipment, and manufacturing. Import and export have opposite effects on GDP. Exports add, while imports subtract, from GDP. Imports are greater than exports, and so the net effect of trade is a deficit and its net export it –3% The government spending is 19% because state and local governments can't spend more during a recession.
Real World Applications of Number Theory A. Rounding and Truncation 1. Student 1 received a score of 299 out of a possible 334 points for a term in an unknown class. To find what percentage the student received, one must take the score received and divide it by the total amount of points possible, and then multiply the quotient by 100. In this particular case, the teacher chose to use rounding to attain the final grade of the student. To round to the nearest whole number, one must consider the value in the tenths place.
Such a lot of fabulous pieces to choose our showcase from this week. Here are the lucky ones. Don't forget, if your name is here ... What does a 100 word essay look like? - Yahoo! Answers answers.yahoo.com › ... › Education & Reference › Homework Help Oct 17, 2008 - This is what a one hundred word essay looks like.
To equity (levered free cash flow): Same as firm FCF and then less interest and any required debt amortization. 2. What are the four basic ways to value a company? Market comparisons/trading comps/comparable companies: Metrics, such as multiples of revenue, earnings and EBITDA like P/E and EV/EBITDA can be compared among companies operating in the same sector with similar business risks. Usually a discount of 10 percent to 40 percent is applied to private companies due to the lack of liquidity of their shares.
This meant that the risk was issued at investment grade but now was not backed by valuable assets of the companies which were to be spun off to MI which was to be backed by equity. The value of the bonds would decline substantially and the bond holders would loose a lot of their investment. c) Management(The Mariott brothers) The management gains from the spin off since it is able to split its distressed assets from the profit driving assets and there was a new company which was not under distress thus helping them retain their management positions and start from scratch. They can concentrate on core businesses thus improving efficiency and value. d) The value of the
Such economies of scale will allow Berkshire to offset the very high costs of cold-forming equipment. Business StrategyA careful analysis is needed in order to determine Berkshire’s business strategy. At first one would think it was product differentiation because of the inelastic demand in the short run. But one thing that should also be noted is the fact that for most goods, demand is much more price elastic in the long run than in the short run. This combined with the fact that Berkshire is convinced that it could not individually raise prices without suffering substantial volume declines, and that all the products of the different manufacturers in the industry are very similar, prove that their business strategy is in fact cost leadership.
Gore to screen the best acquisition targets for its business without threatening its own unique culture. From a financial perspective, mergers and acquisitions can be costly mistakes for companies who pursue aggressive or large deals. Academic literature has shown with empirical evidence that the most successful transactions, as measured by excess returns, are done when a company acquires private business units or companies, within the same industry as the acquirer and are financed through cash. Large deals, which involve public acquisitions that are financed by equity often, result in financial overinvestment and burden on the part of the company and shareholders. It is important to note that W.L.
Ratio | Formula | Amaon 2013 | eBay 2013 | Debt Ratio | TL/TA | | | In leverage ratio, I choose debt ratio, eBay is 24.6% while Amazon is 54.8%. In this ratio, eBay is lower than Amazon which means eBay has less debt should to pay than Amazon. EBay’s assets are financed more through equity than debt compare to Amazon, illustrated that eBay has a lower risk in operation. In addition, eBay may have more borrowing capacity and financial flexible to enlarge its business than Amazon. Let’s see some profitability ratio to have some in-depth discussion.
a. True b. False (1-3) Forms of organization 3. F M Answer: b EASY A disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal liabilities in the event of bankruptcy than are investors in a typical partnership. a.