Discuss two methods of selling stock.
What will be an ideal response?
*One way to sell stock is through private placement, in which the firm's stock is sold to selected individuals, usually the firm's employees, the owner's acquaintances, members of the local community, customers, and suppliers.
*Some small firms make their stock available to the general public in what is called an initial public offering (IPO). The reason often cited for a public sale is the need for additional working capital.
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A company usually makes a reversing entry
A. on the first day of the next accounting period. B. at the end of the prior accounting period. C. on the second day of the next accounting period. D. on the last day of the next accounting period.
Each of the following transactions would be classified as either an investing or a financing activity except
a. investments in stock are purchased. b. a bank loan is obtained. c. stock is issued to acquire land. d. dividends are paid.
The highest level of interdependence is called ______ while the lowest level of interdependence is ______.
What will be an ideal response?
The fixed overhead application rate is a function of a predetermined "normal" activity level. If standard hours allowed for good output equal this "normal" activity level for a given period, the production-volume variance will be:
a. Zero. b. Favorable. c. Unfavorable. d. Either favorable or unfavorable depending on the budgeted overhead.