Answered: Are liquidations likely to be more…

Business

Finance

Are liquidations likely to be more common for public utility, railroad, orindustrial corporations? Why or why not?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter25: Bankruptcy, Reorganization, And Liquidation

Section: Chapter Questions

Problem 5Q

See similar textbooks

Related questions

Q: Would it be a sound rule to liquidate whenever the liquidation value is abovethe value of the…

A: It is the dollar amount that could be acknowledged whether the asset were sold separately and not as…

Q: Differentiate between voluntary and involuntary liquidation of a company and outline the…

A: Liquidation is the process of getting a business shut down and distributing its assets to claimants.…

Q: Choose the correct. If the reorganization value of a company emerging from bankruptcy is larger than…

A: Answer: Option c.

Q: What is the difference between a constituent corporation and a consolidated corporation?

A: Corporation is a type of legal business entity which is established by group of individuals to…

Q: If the corporation is considered as de facto, who can question its existence? Board of Directors…

A: When corporation is considered as de facto, it means that corporation exist even though it may not…

Q: In a merger of consolidation, or transfer to a controlled corporation, loss is deductible. Group of…

A: Kinds of tax-free exchange include: Transfer to a controlled corporation Merger or consolidation

Q: In governmental accounting, what is the difference between an acquisition and a merger? What…

A: The government uses a different way to report their financial statements than the private sector…

Q: Explain publicly owned corporation

A: Publicly owned corporation: A publicly owned corporation is a corporation whose proprietorship is…

Q: Which of the following is NOT a basic right of common shareholders? O The right to a share of the…

A: Answer 2: The right to share in profits and losses.

Q: Is there a limit to a number of corporation that can enter into a JV?

A: Joint ventures (JV) can be defined as a form of business organization under which two or more…

Q: Which is not a mode of involuntary dissolution of a corporation? a. Legislative revocation of…

A: Solution: following are mode of involuntary dissolution of a corporation: a. Legislative…

Q: What has been the likely effect of the Gramm-LeachBliley Act on financial consolidation?

A: The Gramm-Leach Bliley act is a act that has been enacted in order to explain the provisions of the…

Q: Limited liability is a disadvantage of corporation companys? true or false

A: Limited liability refers to the term that means in case of insolvency of the business, personal…

Q: What is the reason for renewed interest in not-for-profits corporations?

A: Non-profit corporation owners do not make a profit. The money of a not-for-profit organisation is…

Q: When may a corporation sell, lease, exchange, mortgage, or pledge all or substantially all of its…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which descriptor relates to the imcome approach for valuing corporations?

A: Income capitalization approach or income approach is defined as the type of the appraisal method or…

Q: Which of the following facts would prevent an S corporation election?

A: Option A is Correct answer Share issued and paid up only such shareholders have the right to vote…

Q: Explain the difference between a privately owned and a publicily owned company?

A: The difference between a public and a private company are as follows:

Q: If the reorganization value of a company emerging from bankruptcy is larger than the fair values…

A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…

Q: Why might the decision to own rather than lease real estate have an unfavorable effect on the…

A: Real estate investing: Real estate investing is defined as the acquisition of property as an…

Q: Why do the basis and at-risk rules usually prevent the same amount of losses from passing through to…

A: An S Corporation is treated more like a partnership than a C Corporation. So, S Corporation is a…

Q: Which of the following is not true with regard to a business combination accomplished in the form of…

A: This is the question of parent Company and subsidiary company. Parent company has controlling…

Q: How do you differ a public corporation from a private corporation? give examples-names, purpose or…

A: Corporation- A corporation is a legal entity with the identity of a legal person that was formed by…

Q: Which of the following does not make it easier for corporation to raise capital? a) limited…

A: OPtion explanation a) Shareholders of corporation have limited liability b) Corporation…

Q: Which of the following is not a right of owners of common shares? Residual assets in liquidation…

A: A company has several sources from where it can raise funds. It can issue equity shares and the…

Q: Which activities changes equity but does not affect a corporation's assets and liabilities?

A: Changes in equity: The amount of equity changes due to increase or decrease in the business…

Q: Describe the ideas and valuation techniques that underpin the acquisition method of accounting for…

A: This question explains about the ideas and valuation techniques that underpin the acquisition method…

Q: Which of the following does not make it easier for corporation to raise capital? a) limited…

A: Corporation has a separate legal entity and they can raise funds from the public as per the…

Q: Which of the following Is not required to use IFRS? Multiple Choice O Publically traded company O…

A: IFRS stands for International financial reporting standards. These are Accounting standards issued…

Q: Transferring corporate assets to shareholders for less than fair market value is a form of Multiple…

A: Looting is the practice of obtaining or seizing items by force, usually during a military,…

Q: Which characteristic of a corporation is a disadvantage? a. Mutual agency b. Double taxation c.…

Q: What term is used to refer to denote that creditors usually may not go beyond the assets of the…

A: A creditor is an individual or an institution that has extended credit to a particular company. It…

Q: Explain the difference between an S corporation and a limited- liability company.

A: Introduction: A limited liability company is a corporate group that has a business or entity with a…

Q: Distinguish between publicly held and privately (or closely) held corporations.

Q: For what reasons might a corporation purchase its ownstock?

A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…

Q: Discuss the various reasons why one corporation might invest in the stock of another corporation?

A: Investing in common stock: When the investment is made in common stock the investor gets some rights…

Q: A trustee for a company that is being liquidated voids a preference transfer. What has happened, and…

Q: Why do certain corporations disclose non-GAAP financial measures?

A: This question explains about corporations disclose non-GAAP financial measures

Question

Are liquidations likely to be more common for public utility, railroad, or
industrial corporations? Why or why not?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Would it be a sound rule to liquidate whenever the liquidation value is abovethe value of the corporation as a going concern? Discuss.
Does appraisal right of any stockholder when the corporation is buying or acquiring another machinery or assets for the company, applies? Or, for only disposition purposes only?
The question is about corporation liquidation
What term is used to refer to denote that creditors usually may not go beyond the assets of the corporation to satisfy their claims? Group of answer choices unlimited liability limited liability double taxation mutual
In governmental accounting, what is the difference between an acquisition and a merger? What differences exist between the accounting for an acquisition and for a merger?
For what reasons might a corporation purchase its ownstock?
When may a corporation sell, lease, exchange, mortgage, or pledge all or substantially all of its assets in the usual and regular course of its business? b. When may a corporation sell, lease, exchange, mortgage, or pledge all or substantially all of its assets other than in the usual and regular course of its business? c. What are the rights of a shareholder who dissents from a proposed sale or exchange of all or substantially all of the assets of a corporation other than in the usual and regular course of its business?
In the absence of restrictive provisions, what are the basicrights of stockholders of a corporation?
What type of taxpayers (entities) are aﬀected by the passive loss rules? What is the signiﬁcance of a closely held corporation with regard to the deductibility of passive losses?
In case of sale of all or substantially all of the corporate property, is the appraisal right given to both the selling and acquired corporations' dissenting stockholders? Or only the selling corporation?