In the analysis of net assets, what factors should be considered?

What will be an ideal response?


In the analysis of net assets (and any financial ratio involving net assets such as "net assets to total debt"), consideration should be given to the liquidation value of the assets. Liquidation value will often differ dramatically from the net asset value stated on the balance sheet. If the liquidation value per share for a company is less than the current share price, then it usually means that the company should go out of business. A company with a high percentage of its assets in cash and marketable securities is in a much stronger asset position than a company whose primary assets are illiquid real estate. Finally, consideration should be given to several other financial variables including intangible assets, pension liabilities, and the age and condition of the plant. Companies with greater intangible assets will typically have a lower liquidation value. Pension liabilities are a major concern if a company's pension fund is underfunded. Plants that are in poor condition will have lower liquidation value.

Business

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Define stereotyping.

What will be an ideal response?

Business

Answer the following statements true (T) or false (F)

1. Workplace diversity includes customers. 2. Diversity and work aren’t separate because we tend to judge the nature of workers by the gender, race, and other diversity of the people who do the work. 3. Inclusion is a practice of ensuring that employees feel a sense of pride of membership within their diversity group. 4. By around 2025, less than half of the total U.S. population will be Caucasian.

Business

What federal statute was enacted by the Congress to protect trade secrets?

A) Economic Espionage Act B) Sarbanes-Oxley Act C) Lanham Act D) Telecommunication Act

Business

Which of the following best describes the term equivalent units?

A) partially completed units expressed in terms of fully completed units B) partially completed units of output that will be sold as is C) substitute of units that are partially completed D) different types of units that have same selling price

Business