Quick Answer: The Valuation Principle Shows How To Make The Costs And Benefits Of A Decision Comparable?

Why is the stock price of a company an indication of the performance of the company’s senior managers?

12) Why is the stock price of a company an indication of the performance of that company’s senior managers? A) Well-run companies are invariably highly profitable, which leads to a higher share price. In general, people want to invest in a well-managed corporation, which will drive up the price of shares.

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Which of the following would be more typically the responsibility of a controller rather than a treasurer?

Which of the following would be more typically the responsibility of a controller rather than a treasurer? Your answer is correct. It is overseeing accounting and tax functions. The controller is more responsible for the whole accounting of the company.

What is the major way in which the roles and obligations of the owners of a limited liability company differ from?

What is the major way in which the roles and obligations of the owners of a limited liability company differ from the roles and obligations of limited partners in a limited partnership? A) The owners of a limited liability company have personal obligation for debts incurred by the company.

What is the most common type of firms in the United States and the world?

Corporations and limited liability companies (LLC) are the most common types of business entities in the United States. Every US corporation needs to have a federal tax return on file.

Is it better to buy expensive or cheap stocks?

There is no difference between more shares of a relatively cheaper stock and less shares of a relatively more expensive stock. When you invest in a stock, the percentage increase (or decrease) in the share price results in gains (or losses). This is a fundamental concept of investing.

What happens if stock price goes to zero?

A drop in price to zero means the investor loses his or her entire investment – a return of -100%. Because the stock is worthless, the investor holding a short position does not have to buy back the shares and return them to the lender (usually a broker), which means the short position gains a 100% return.

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Which of the following best describes why the valuation principle is a key concept in making financial decisions?

What best describes why the Valuation Principle is a key concept in making financial decisions? It shows how to make the costs and benefits of a decision comparable so that we can weigh them properly.

Is a controller an executive position?

A controller is a company executive that is responsible for all the organization’s accounting activities. They typically report to the company’s CFO if there is one. In a larger organization, a controller will oversee payroll processing and financial reporting, and they might help the CFO to prepare operating budgets.

Which of the following is a controller’s responsibility?

As the chief accounting executive, the controller’s duties cover all of the accounting functions in the organization. These may include general accounting, cost accounting, budgeting and forecasting, accounting methods and procedures, taxes, and internal auditing.

Which of the following is the responsibility of a bank board of directors?

The Board will review and approve (a) the Bank’s strategic goals and objectives, as proposed by management, and use those goals and objectives, among other criteria, to evaluate the Bank’s performance, (b) the Bank’s annual budget, and monitor the Bank’s performance against the budget, and (c) on an on-going basis,

What is the most important difference between a corporation and all other organizational forms?

What is the most important difference between a corporation and all other organizational forms? An important difference among the types of corporate organizational forms is the way they are taxed. Shareholders of a corporation pay taxes twice. This system is sometime referred to as double taxation.

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In what type of ownership is an owner liable for debt but only based on how much they invested?

Limited Liability means that corporate owners (stockholders) and limited partners are responsible for looses only up to the amount they invest. A business organization in which the business (not the owner) is liable for the company’s debts.

What is a major drawback of sole proprietorships?

The biggest disadvantage of a sole proprietorship is the potential exposure to liability. In a sole proprietorship, the owner is personally liable for any debts or obligations of the business.

What is the easiest type of business to form?

Sole Proprietorship: The simplest type of business. Sole proprietorships are owned and operated by a single person and are very easy to set up.

What is the most common type of ownership?

1. Sole Proprietorship. A type of business entity that is owned and run by one individual – there is no legal distinction between the owner and the business. Sole Proprietorships are the most common form of legal structure for small businesses.

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