What obligation does an entrepreneur (owner) have to investors that purchase bonds to finance the business?

Q: While determining which companies will receive capital, what information do investors and creditors…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: If Firm A's business is to obtain savings from individuals and then invest them in financial assets…

A: Financial intermediary: It is a firm that goes about as the agent between two parties in financial…

Q: When will investors make contact with their brokers to purchase or sell securities?

A: Securities: Securities are financial instruments that trade on the stock exchange. These securities…

Q: If you own a company what you prefer to issue ordinary shares or bonds, explain why?

A: Shares of a company represent the ownership, and a shareholder is considered an owner of the company…

Q: Mr. Ahmed would like to buy securities. Which of the following securities should he not to buy to…

A: A business entity finances its operations through various sources of funds such as equity and debt…

Q: Which of the following is a financial investment that represents a loan made to a private business?…

A: Financial investment means the amount invested in financial instruments by an investor. It can be in…

Q: What is Debt financing? What are the major sources of corporate financing?

A: Corporate finance is the domain of finance concerned with how companies cope with financing sources,…

Q: Which of the following can be described as involving indirect finance? a. People pay premiums to an…

A: An indirect finance is referred as the finance, where the borrowers used to borrow the funds from…

Q: The following are examples of debt financing EXCEPT: a. Selling an ownership stake in the company…

A: Bonds represent the amount which is raised by the firm where repayment is made after a certain time…

Q: For a corporation, what are theadvantages of corporate bondsover long-term loans?

A: Bonds are a type of debt which is issued by the company  or the government. It is long term debt on…

Q: primary way a corporation can raise money through Equity financing

A: Primary market is market where money is raised via public by issue of stock.

Q: Which of the following can be described as involving direct finance? A. People buy shares in a…

A: Direct finance does not involve any intermediate party or a third party. There is a direct…

Q: How a company takes tax advantage of Bonds Payable (or any other fixed cost financing)?

A: Giving securities is one path for organizations to fund-raise. A bond capacities as a credit between…

Q: What information do investors and creditors need when determining which companies will receive…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Why would a company invest in debt or equity securities?

A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…

Q: Which of the following forms of business organization can finance its operation through acquiring…

A: The corporations are considered as separate legal entity. They have different types of methods for…

Q: One of the primary reasons for investing in debt securities includes a. Deducting interest payments…

A: One of the primary reasons for investing in debt securities includes Earning interest revenue.…

Q: What are stock warrants and convertible debt? How do stock warrants work? How does convertible debt…

A: Stock warrant (SW) is a contract through which investors get rights to purchase the particular…

Q: Discuss the implications of financing through debt as they compare to financing through equity. What…

A: When a company raises capital by selling debt instruments to investors, this is referred to as debt…

Q: Which of the following is a Long Term Source of Finance? a. Customer Advances b. Equity Shares c.…

A: Financial instruments are instruments that have some monetary value and are created due to the…

Q: How does the deductibility of interest and dividends by the paying corporation affect thechoice of…

A: A way to finance the capital requirement by the category of ownership in a company that has the last…

Q: Why mix of equity and debt finance being preferred in financing businesses?

A: The financial structure composed of debt and equity capital is frequently preferred in the…

Q: Discuss how Floating and Fixed debentures affects the profitability of a business?

A: In floating debentures the interest rate of such debentures change will the level of changes... Such…

Q: What are some reasons that a company might choose common stock as means of financing their business…

A: Common Stock Common stock represents the ownership of a corporation by its stockholders. It allows…

Q: How any company is taking tax advantage of bonds payable or any other fixed cost financing?

A: Bond can be considered as an I.O.U between the lender and the borrower that contains details about…

Q: If you are a company owner, which one you choose debt financing, equity financing or a combination…

A: Finance is very important to run a business. It is very necessary to have finance to conduct day to…

Q: What do you call those investors who buy shares of stocks of a company and become legal part owner…

A: The company includes owner and creditor during the year. Owners are the investors who invest into…

Q: Which of the following are owners of Business? a. Public Deposits Holders b. Holders of Shares c.…

A: Entities acquire funds for various purposes like expansion or capital expenditures. So, the various…

Q: Which of the following users assesses the attractiveness of investing in a business A. Bank B.…

A: Before Investing in any business users go through the financial statements of the business and other…

Q: How will investors maximize the returns of corporatebonds or redeem their corporate bonds?

A: Corporate bond is defined as the bond, which is used to issue through the company for increasing the…

Q: Discuss and explain three reasons that companies invest in debt and equity securities.

A: A debt investment entails lending money to a company or entity in exchange for the promise of…

Q: Why should an investor use debt?

A: Debt investments represent the loan which an investor lends to earn interest along with the…

Q: When will investors contact their brokers to buy or sellthe securities?

A: Securities:-Securities are those instruments that float in the money market. Investors and brokers…

Q: Which of the following is a financial liability? a. Deferred revenue b. A warranty obligation c. A…

A: Solution Concept As per the relevant accounting standard Financial liability is…

Q: When are corporations likely to call their bonds?

A: They are many types of Bond, Generally the Bonds are Paid at the time of Maturity to the Bond holder…

Q: Evaluate whether using the cash raised by the rights issue to buy back bonds is likely to be…

A: The answer for the question on using the cash raised by the rights issue to buy back bonds is…

Q: Which of the following is a financial investment that represents a loan made to a private business?…

A: Purchasing mortgage backed securities, doesn't represents a loan made to a private business.

Q: “An investor who purchases the mortgage bonds of a corporation knows that should the corporation…

A: “An investor who purchases the mortgage bonds of a corporation knows that should the corporation…

Q: Which of the following sources of entrepreneurial financing are available to ventures that have…

A: The business which has already started the can take loan from anywhere the business which has just…

Q: What is bought and sold in the equities market? What’s the difference between an LLC and a standard…

A: Since there are more than one question is posted at a time. As per rule, only one question can be…

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: Which of the following is a financial investment that represents a loan made to a private business?…

A: Introduction: Financial investment is considered as the amount capitalized in financial instruments…