A separation of ownership and management

Assignment Help Accounting Basics
Reference no: EM131067483

"Limited liability for shareholders makes it possible to have a separation of ownership and management." Explain what the prvious statement means and why it helps to make a corporation an attractive vehilce for investors. (6 marks)

Reference no: EM131067483

Questions Cloud

Mortgage loan-what is the principal balance on the loan : You take out a 25-year $180,000 mortgage loan with an APR of 12% and monthly payments. In 13 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?
Derive the maximum displacement : A mass of 2 kg oscillating on a spring with constant 4 N/m passes through its equilibrium point with a velocity of 8 m/s. What is the energy of the system at this point? From your answer derive the maximum displacement, x m of the mass.
Which portfolio makes most sense from society standpoint : A bank can invest in 2 portfolios. Each requires $100 million to be raised either through debt or equity. One portfolio contains only safe assets and pays a certain gross return of $118 million. Which portfolio makes the most sense from society's sta..
A separation of ownership and management : "Limited liability for shareholders makes it possible to have a separation of ownership and management." Explain what the prvious statement means and why it helps to make a corporation an attractive vehilce for investors. (6 marks)
Calculate the present value of your payments to the bank : A local bank advertises the following deal: Pay us $100 at the end of each year for 12 years and then we will pay you (or your beneficiaries) $100 at the end of each year forever. Calculate the present value of your payments to the bank if the intere..
Necessary for the following treasury stock transactions : Prepare the journal entries necessary for the following Treasury Stock transactions. Create T-Account for the Paid in Capital - Treasury Stock account.
Loan by reducing his remaining payment period : Robert is repaying a debt with 21 annual end-of-the-year payments of $1300 each. At the end of the 4th year, he makes an extra payment of $2600. He then refinances his loan by reducing his remaining payment period by 2 years and making level payments..
Minimum rotational inertia of the flywheel : During half a rotation the flywheel has to absorb 1000 J of energy. If the maximum permissible speed fluctuation is ± 60 RPM, what is the minimum rotational inertia of the flywheel? Assume there is no friction.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd