All of the following are examples of loss financing, except:

A) raising capital through selling stocks and bonds on the capital market
B) insurance
C) hedging
D) risk retention


A

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Gary, Peter, and Chris own a firm as partners. Gary has a capital balance of $22,000; Peter a capital balance of $42,000; and Chris has a capital balance of $32,000. As per the partnership agreement, Gary gets a profit share of 2/9; Peter has 4/9; and Chris has 3/9. Which of the following is TRUE, if Gary withdraws from the partnership by receiving $22,000?

A) Peter, Capital and Chris, Capital will be credited for $11,000 each. B) Gary, Capital will be debited for $22,000. C) Cash is debited for $22,000. D) Peter, Capital will be credited for $22,000.

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Hyde Company traded in an old machine with a book value of $15,000 on a new machine. The exchange did not have commercial substance. The new machine, which had a cash price of $75,000, was purchased for $64,000 cash plus the old machine. Hyde should record the cost of the new machine as

a. $64,000. b. $71,000. c. $75,000. d. $79,000.

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One of the methods of doing a managerial personal analysis that is becoming popular is the 360-degree feedback

Indicate whether the statement is true or false.

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The First Amendment's guarantee of free speech applies to:

a. corporate political speech. b. defamation. c. commercial speech. d. all of these.

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