Why might a lender want such an assignment

Assignment Help Managerial Accounting
Reference no: EM132605199

Question 1: One thing lenders sometimes require when loaning money to a small corporation is an assignment of the common stock as collateral on the loan. Then, if the business fails to repay its loan, the ownership of the stock certificates can be transferred directly to the lender. Why might a lender want such an assignment? What advantage of the corporate form of organization comes into play here

Reference no: EM132605199

Questions Cloud

How the roles performed by hr have changed over the years : What key features or HR emphases do you note referencing government job needs? Select a current job opening and summarize its requirements in the category.
Which actions by a financial manager creates agency problem : Which actions by a financial manager creates an agency problem? agreeing to pay bonuses based on the book value of the company stock
What would be reported for ending Merchandise Inventory : Beginning Merchandise Inventory 100 units at $81. What would be reported for ending Merchandise Inventory on the balance sheet at December 31, 2018
Describe the various techniques used in ad : Describe the various techniques used in ad (celebrity endorser, user imagery, executional factors etc.) and how that links to personality they are communicating
Why might a lender want such an assignment : The ownership of the stock certificates, Why might a lender want such an assignment? What advantage of the corporate form of organization comes into play here
Discuss the base pay and variable pay : In the video, base pay and variable pay are discussed. What are the main differences between each? How would you used variable pay to drive organizational.
Should SM accept the outside offer : On the basis of financial considerations alone, should SM accept the outside offer assuming that production remains consistent with the past year
Compute the percentage rate of net funds freed : National Auto Loan has customers throughout the 48 contiguous states. Compute the percentage rate of net funds freed
Why company financial picture changed with new sales mix : If the costs for all the products would decrease with 10 percent would the operating income then increase with 10 percent. Explain

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What would the net present value of the investment

How is that figured out? First is, to sum up, the present value of all cash flows (inflow & outflow) that will give you the net present value of the investment

  Operating budget depends

The operating budget depends on key information developed in the..

  Find a newspaper article

Find a newspaper article or web page report of an item of accounting news, i.e. it refers to a current event, consideration, comment or decision that has been published after November 2013

  Laker company reported the following january purchases

In Exercise 6-3, Laker Company reported the following January purchases and sales data for its only product.

  Differentiate between the two types of budgets

Provide support for business selection and include the advantage for using a flexible budget over a static budget. Differentiate between the two types of budget

  What is a fair price for the stock if buy today

At the end of the four years, you will sell the stock for $20. If you want to earn 12% on this investment, what is a fair price for this stock if buy today

  Division of hewlett-packard

Assume a division of Hewlett-Packard currently makes 12,000 circuit boards per year used in producing diagnostic electronic instruments at a cost of $37 per board, consisting of variable costs per unit of $25 and fixed costs per unit of $12. Further ..

  Compute the july balances of the work in process inventory

Compute the July 31 balances of the Work in Process Inventory and the Finished Goods Inventory accounts. (Assume there are no jobs in Finished Goods)

  Balances appeared in the accounts of fast wheels

The following transactions occurred in June at Fast Wheels, Inc., a custom bicycle manufacturer:

  What is the return on equity for the company

What is the return on equity for this company? Current assets: $36,543.Current Liabilities: $24,824.Stockholders equity: $10,158

  What are prime costs and conversion costs

What are prime costs and conversion costs? What is the difference between total manufacturing costs incurred and the cost of goods manufactured?

  How much would operating income increase

Tohono Company's 2013 master budget included the following fixed budget report. It is based on an expected production and sales volume of 20,000 units.

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