Explain the situations under which a firm is dissolved.
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: how Settlement of accounts on dissolution of the firm
A: DISSOLUTION OF FIRM - Dissolution is nothing but the termination of the relationship between the…
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: what are formations and causes for end of personality for limited compan
A: Answer: Limited company personality is the incorporation that has the limited liability. The…
Q: When is the fair value method used for recording interest in a separate company?
A: The methods for recording interest in a separate company are as follows: Fair value method Amortized…
Q: Describe the different types of legal arrangements that can take place to create a business…
A: Corporation: Business concerns which have a separate legal entity; and are owned by shareholders,…
Q: what is the difference between a sole trader , pafrtenership and a company . explain
A: Sole proprietorship in easy words could be a one-person business organization. moreover, a sole…
Q: All accounts of the firm are closed in case of a: O a. Dissolution of firm O b. Realization Account…
A: Dissolution of firm means firms ceased to exist. Realization Account is a nominal account which is…
Q: What is the difference between an operating merger and a financial merger?
A: Introduction: A process or an arrangement in which two or more companies are merged to create one…
Q: Which type of business organisation has a separated legal entity from its owners, and the owners are…
A: A. Limited Liability Company (LLC) A Limited Liability Company (LLC) is a cross between a…
Q: a) What an associate is and explain the accounting requirements relating to having an associate and…
A: Companies invest money into another company and that company in which the investment is made becomes…
Q: Which all circumstances lead to dissolution of a firm? O a. All options are correct O b. Dissolution…
A: Ways to dissolved a partnership firm 1. Dissolution by mutual consent of partner(By agreement) 2.…
Q: Compare and contrast these charges, paying particular attention to how they are created and…
A: Fixed ChargeIf a debt is subject to a fixed charge, the borrowing will be secured against a…
Q: merger is the dissolution of one or more companies and the transfer of its capital or their…
A: Merger means two or more firms merge into one and business will be continued by the merged company.
Q: re the reasons for public (listed) companies bankrup
A: Bankruptcy is a legal proceeding that occurs when a person or business is unable to repay their…
Q: Explain why transactions between members of a consolidated firm should not be reflected in the…
A: Introduction: Consolidated financial statements are the consolidated audited financials of a company…
Q: Evaluate the similarities and differences between trusts and corporations. In an attempt to protect…
A: A legal entity acting as an agent of the individual or entity just to manage the assets and transfer…
Q: What is the difference between a merger and a corporate alliance?
A: Merger is the process of combining two or more companies with the purpose of forming a new company.…
Q: What will be the liability of the corporation as to themselves and to third person in case of merger…
A: The following concept deals with the liability of the corporation to its third parties and other…
Q: When one company buys the assets and liabilities of another company, this is known as which of the…
A: Corporation: It can be defined as a legal entity that has a separate existence from its owners.
Q: Explain the key steps in the acquisition method in accounting for business combination. Why Fair…
A: Business Combination- It is a situation when an entity acquires the business of other entity or…
Q: have the right to vote on a sale of the firm under any circumstances? Explain.
A: A voting right is the ability of a corporation's shareholders to vote on corporate policy issues…
Q: Explain Limited Liability Companies?
A: INTRODUCTION:- A limited liability company (LLC) is a business structure for private companies in…
Q: What are the different financial risks in business acquisition and combination?
A: Financial risk is the risk that the company has overpaid or has got more leverage than required or…
Q: Explain whether the following statement is true or false: Only weak companies issuedebentures.
A: A long-term liability that is issued by a company with a fixed interest rate to raise the fund for…
Q: 1. What are the powers of liquidator in the case of winding up of a company?
A: Liquidator: It is a person appointed to handle the procedure of liquidation. All assets are sold…
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: Which among the following occasions does not contribute to reconstitution of the firm? Retirement of…
A: Partnership means where two or more person comes together to do some common business activity and…
Q: Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of…
A: Management Buy-Out (MBO) involves the pooling of resources by the management team in order to…
Q: How does running a company as a partnership as opposed to a corporation benefit the parties…
A: Describe the benefits and drawbacks of operating a business through a partnership rather than a…
Q: What are the functions of the underwriters in an IPO?
A: Initial Public Offering Initial public offering refers to the process by which a company sells its…
Q: An entity is solvent if it can pay its currently maturing obligation.
A: Solvency: Solvency is the ability of a company to pay off its debts using assets in other words the…
Q: What are the steps that would be needed for a company to transition from GAAP to IFRS?
A: GAAP refers to Generally Accepted Accounting Principles which is followed by US companies. IFRS is…
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: 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: Offer some reasons that a company might choose to merge with or acquire another company.
A: A company merges or acquires another company when the benefits of such action exceed the costs.
Q: If a director allows a company to continue to trade indefinitely and the company is placed into…
A: In a partnership, two or more parties agree to operate and manage a business and share the profits…
Q: Distinguish between dissolution of partnership and dissolution of the firm.
A: Partnership:Partnership is defined as an association of two or more persons to carry business for…
Q: Describe the order of claimants and how it impacts the returns that various providers of capital…
A: Claimants refer to the creditors who are entitled to receive the payments, from the debtor…
Q: Which accounting principle states that companies and owner should be treated as separate entities
A: A company is formed by the owner of the company but the owner is treated as separate entities and…
Q: A concept that a business enterprise will not be sold or liquidated in the nearfuture is known as…
A: A concept that a business enterprise will not be sold or liquidated in the nearfuture is known as…
Q: What are advantages and disadvantages of changing the company organization from sole proprietorship…
A: Advantages of LLC: Pass-through taxation No restrictions on the number of members allowed Members…
Q: Explain an ageny problem for a corperation with eamples, and identily means by which the firm can…
A: An agency problem is a common problem existing in firms which arises when a conflict of interest…
Q: A company acquires a rather large investment in another corporation. What criteria determine whether…
A: Equity method: Equity method is the accounting method used for accounting equity investments which…
Q: The cost of registering equity securities in a business combination should be recorded as
A: Equity securities are those stock or securities which provides ownership rights in the company.…
Explain the situations under which a firm is dissolved.
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- What term is used to describe the characteristic of a business entity where an individual(s) associated with an entity can not only lose all of his/her investment in the firm but personal assets can be taken to pay the debts of the firm if necessary? Group of answer choices unlimited liability limited liability dissolution mutual agencyWhat are the possible actions when a business becomes insolvent?Differentiate between voluntary and involuntary liquidation of a company and outline the circumstances under which each may occur.
- Which type of business organization provides the least amount of protection forbankers and other creditors of a company?a. Partnershipb. Corporationc. Proprietorshipd. Both a and cDiscuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of divestment from a business.What are the different financial risks in business acquisition and combination?
- What does it mean for a company to be a legal person and what does it mean for owners of a company to have limited liability? Use an example to compare the liability of owners of two companies, one with limited liability and one without limited liability.what are formations and causes for end of personality for limited companyEvaluate the similarities and differences between trusts and corporations. In an attempt to protect income, which would be most suitable for a company?
