Define purchase commitments. What is the advantage(s) of these agreements to buyers?

Q: What are the attributes associated with a successful acquisition strategy?

A: Acquisition: Acquisition refers to when one company purchases a another company’s share partly or…

Q: Differentiate between price risk and reinvestment risk.

A: Price risk is the risk of decline of the price of the investment or an asset after the underlying…

Q: What document is the difference between a primary and a secondary market?

A: Primary Market: The primary market is where new securities are formed, while the secondary market is…

Q: What is a sale-and-leaseback transaction?

A: Sale and leaseback is a deal in which the owner of an asset trades an asset, typically real estate,…

Q: How much is the goodwill/gain on bargain purchase?

A: Share capital = P500,000  Additional paid in capital = P300,000  Retained earnings = P500,000  Add:…

Q: Explain the term Right of Entry: Lender in Possession?

A: The question is based on the concept of giving right of entry in case of mortgage arrangement in…

Q: What is the transaction price? What additional factorsrelated to the transaction price must be…

A: The transaction price is an amount that is received by the company from the transfer of goods or…

Q: Creative negotiation techniques that establish deal structure such as offering owner financing , a…

A: Negotiation is defined as the style of discussion factors, where individuals have an effort to…

Q: Define Trade discounts.

A: Business:   It refers to a commercial activity involving buying and selling of a product or a…

Q: Sellers supply can be represented by-

A: Answer

Q: Explain the following concepts: (a) bargain purchase option and (b) bargain renewal option.

A: Lease agreement refers to an agreement in which a contract is made to get the asset on lease. The…

Q: who benefits: the buyer or the seller?

A: Buyer can "assume the mortgage" which means for purchasing of a home buyer is not required to take a…

Q: (Based on Appendix 9) Define purchase commitments. What is the advantage(s) of these agreements to…

A:

Q: What is an Acquisition costs?

A:

Q: What is exchange risk, as distinct from exposure?

A: Foreign exchange risk or foreign exchange exposure refers to the financial risk associated with a…

Q: Explain Effective Cost of the Sale-Leaseback?

A: Sales leaseback is a type of financial transaction where the owner sold its property to the other…

Q: How are sellers constrained from recognizing variable consideration, and under what circumstances…

A: The seller generally recognizes the amount of revenue which they believe will be received. In case…

Q: What is the financial advantage (disadvantage) of accepting the outside supplier's offer?

A: Make or buy decision: It is the decision made by the company to manufacture the product or buy it…

Q: discuss the prospects and consequences of trade protection, citing relevant and recent examplesI)

A: For the purpose of increase and decrease in the trade activities of the country, the implementation…

Q: what are the disadvantages of bill of exchange?

A: A bill of Exchange is a certificate of agreement between two parties where one party agrees to pay…

Q: Compute the goodwil (gain on bargain purchase)

A: Goodwill refers to the extra amount of consideration paid over the fair value of the net assets of…

Q: Who is an unpaid seller? Give an example using a situation/scenario.

A: A seller is someone who offers goods or services to the customers. Seller sells its goods or…

Q: Why would an investor-borrower want a participation loan?

A: SOLUTION:- Participation loan: it is a kind of loan in which lender participates in the net…

Q: What are the major advantages to a lessor for becoming involved in a leasing arrangement?

A: The Effect of Residual Values, Guaranteed and Unguaranteed is as follows: In setting the lease…

Q: Compute the goodwill (gain on bargain purchase).

A: The goodwill (gain on bargain purchase) is calculated as follows:Reference:

Q: How does the analysis of a sale-leaseback differ from the analysis of owning versus leasing?

A: A sale lease back is very beneficial for the company because it helps the company to sell the asset…

Q: What is "constructive receipt doctrine? Discuss What is "economic benefit doctrine? Discuss

A: Constructive receipt doctrine: According to constructive receipt doctrine policy, the taxpayer…

Q: What are the key advantages and disadvantages of leasing?

A: Leasing:Leasing is a contractual agreement between the lessor and lessee for hiring of a particular…

Q: Describe some economic factors that might provide an advantageto leasing.

A: Before we discuss the economic factors favoring leasing, let's understand the meaning of leasing. As…

Q: Explain seller financing?

A: Seller financing is the term used in real estate deals when the buyer does not approach any…

Q: Define Purchase commitments.

A: Purchase Commitments refer to the commitments or contract made by a company with its suppliers to…

Q: What is negotiated deals (security offerings)?

A: Negotiated deals are usually referred to in the context of fixed-income securities. The parties…

Q: Types of seller financing?

A: Seller Financing: A real estate or property agreement under which the mortgage process is managed by…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.