One of the essential elements of control is power. According to PFRS 10, an investor has power if

Q: What are some actions that stockholders can take to ensure that management's and stockholders'…

A: In a corporation, stockholders and management are two separate bodies. Stockholders are the owners…

Q: Which of the following statements is CORRECT?     One of the ways in which firms can mitigate or…

A: One of the ways in which firms can mitigate or reduce potential conflicts between bondholders and…

Q: Suppose you need additional capital to expand,and you sell some stock to outside investors. If…

A: As the proprietor or manager, since the corporation, the advantage from augmented wealth, but also…

Q: What conflicts of interest can arise between managers and stockholders?

A: Stockholders also knowns as shareholder is an individual, firm, or institution which owns at least…

Q: If a large group of investors tend to buy a company's stock, an individual might follow too. This…

A: Self Attribution is the another name of person's perception. It is the process of defining the…

Q: What are some actions stockholders can take to ensure that management’s interests and the interests…

A: Some actions that stockholders can take to guarantee that interests of stockholders and management…

Q: Should the qualifications of the board of directors play a role in your decision whether to buy the…

A: An organization's total capital is bifurcated into many units. Each unit represents ownership in the…

Q: Which of the following activity of the company shows that the company management has NOT dealt with…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: Under IFRS 10, parent corporation is the entity that controls one or more entities. How does IFRS 10…

A: Under IFRS 10 ,Control exists when the investor has power, exposure to variable returns and the…

Q: Are poison-pill defenses ethical? If a potential acquirer buys company stock legally, thereby…

A: The word poison pill refers to a defensive technique used by a target firm to prevent or deter an…

Q: Which of the following is an example of protective rights? Rights to appoint or remove another…

A: Protective rights refers to the rights which are designed to protect the parties interest that holds…

Q: Which of the following statements is correct? O Flotation costs under a best-efforts arrangement…

A: The process of issuing shares of a private firm to the public in a new stock issue is known as an…

Q: It is frequently stated that the one purpose of the preemptive right is to allow individuals to…

A: The importance of controlling for the average stockholder of a firm that has its shares traded on…

Q: Explain how a firm might use stock options in order to incentivize a manager to work in the…

A: It is a duty of a manager to work towards the interest of shareholders/origination because manager…

Q: What is the possible agency conflict between inside owner/managers and outside shareholders? What…

A: What is the possible agency conflict between inside owner/managers and outside shareholders?…

Q: This security always has control over decision making: Senior Debt Preferred Equity…

A: Long term capital can be obtained by using following sources: Debt Preference share capital, Equity…

Q: You are auditing a company that owns 22% of the voting common stock of another corporation and uses…

A: Equity method: Equity method refers to a type of accounting used for investment between companies.…

Q: In which of the following instances does Entity A have control over Entity B? A. Entity A is the…

A: Merger & Acquisition refers to the process of gaining ownership in the other organization by…

Q: Leverage is the extent to which a company is using the funds provided by its shareholders to…

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

Q: Which of the following statement is true? a. In brokered markets, buyers and sellers confront…

A: Introduction: The primary market is where the new offerings are issued to the public. The companies…

Q: What is the control requirement of § 351? Describe the effect of the following in satisfying this…

A: Sec. 351 allows a tax-free incorporation transfer if: a. The property must be transferred to a…

Q: Which one of the following roles are NOT typical of the lead underwriter in an IPO Marketing the…

A: A lead underwriter are usually an investment bank or another financial organization.

Q: Why the Nature of internal control over the payment of dividends as in the case of stock issuance is…

A: The Internal Control over Dividends', if we take case of 'Stock issuance', the internal control over…

Q: Which of the following is closest to IFRS 3 Business Combinations definition of control?   A company…

A: In accordance with IFRS 3, the Definition of “control”  An investor controls an investee when the…

Q: In the role of the Phillippines Stock Exchange, which of the following assures that no investor will…

A: PSE or Philippine Stock Exchange is referred to as the private non-profit organization as well as…

Q: All of the following statements are correct, except, An investor may have significant influence…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: which of the following is a control right? shareholders right to elect the members of the board of…

A: Board of directors: Board of directors is a chosen cluster of persons that signify shareholders. The…

Q: subject to ethical

A: Maximizing shareholder wealth is the single or top priority for a company has led to a number of…

Q: Investment banking firms offer to facilitate the sale of securities to the public in a variety of…

A:

Q: Current Attempt in Progress When a company holds between 20% and 50% of the outstanding stock of an…

A: SOLUTION- The investor should use the equity method to account for its investment unless…

Q: What is the difference between investing in a company as a shareholder vs as an employee? Are there…

A: Investing in a company as a shareholder means that the person in making an investment in the shares…

Q: Explain how a firm might use stock options in order to incentivise a manager to work in the…

A: Company provide incentives to managers so that they work in interest of shareholders maximization…

Q: A stockholder dissatisfied with the management of the corporation done by the Board of Directors…

A: Shareholder or Stockholder refers to the person, company which owns atleast one share of the stock…

Q: escribe some mechanisms that are used to solve the stockholder/bondholder agency conflict and the…

A: Agency problem means conflict between the stockholders and the management . There are three type of…

Q: It is and to sell or buy shares of a company on the basis of information not available to the…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Which of the following actions would be most likely to reduce potential conflicts of interest…

A: A conflict of interest occurs when a person or entity has two relationships contending for the…

Q: Which of the following may provide evidence of significant influence even if the percentage of…

A: Ans. A company if holds atleast 20% of the voting power of a company in its business decisions then…

Q: Which of the following factors reflect pure market risk for a given corporation?a. Increased…

A: Market risk is also known as systematic risk, it cannot be eliminated completely. The impact of…

Q: Which of the following situations are unlikely to represent control over an investee? A. Owning…

A: The 51% of shares are owned would show majority shareholding of the company. If the constitution…

Q: articipate in the ownership of the firm. (b) Investors in debt are paid interest. (c) Debt is more…

A: Debt capital consists of the securities that represent lenders or financial creditors to the firm.…

Q: When an investor owns 20% to 50% of the voting stock of an investee company, the investor is…

A: When an investor owns 20% to 50% of the voting stock of an investee company, the investor is…

Q: Why do you think investor would want more than 50% large percentage control of a company as far as…

A: Control of the company: To have control over a firm is to own a sufficient number of voting shares…

Q: Which of the following statement is true? ( a. In brokered markets, buyers and sellers confront each…

A: The stock market is a platform where shares/securities are exchanged amount buyers and sellers. The…

Q: Which of the following statements is NOT correct about the rights granted to common stockholders?…

A: The dividends are  paid the common stockholder are from earnings. It is not mandatory for the…

Q: Which of the following factors contributes to an investor having significant influence over an…

A: According to IAS 28, investment in associate refers to the entity (investee firm) over which the…