Which of the following could be the reason for the capital increase of a collective company? A) The company may not have started with sufficient capital when it was established. B) Its current capital may be insufficient due to the increasing business volume. C) The company may be stuck in a bottleneck and want to make up for it. D) all E) It may have lost value in the market and wants to make up for it.

Which of the following could be the reason for the capital increase of a collective company? A) The company may not have started with sufficient capital when it was established. B) Its current capital may be insufficient due to the increasing business volume. C) The company may be stuck in a bottleneck and want to make up for it. D) all E) It may have lost value in the market and wants to make up for it.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 18MC: What would be a reason a company would want to overstate income? A. to help nudge its stock price...

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What would be a reason a company would want to overstate income? A. to help nudge its stock price higher B. to lower its tax bill C. to show a decrease in overall profits D. none of the above
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True of False? Contributed capital decreases when the company has a net loss. If your answer is “False”, then explain (in one sentence) why the statement is false.
17. Which of the following is not a reason why companies are not always entirely clear on their dividend policy? A. For fear of giving away sensitive information. B . In order to maintain a managerial advantage over shareholders. C. Because they do not know how much is available for dividends. D. Companies have different abilities to communicate
11. A corporation may incur agency costs because: A. Managers may not attempt to maximize the value of the firm to shareholders.B. Shareholders incur monitoring costs.C. All of the responses are correct.D. Of the separation of ownership and management. 12. A firm's investment decision is also called its A. liquidity decision.B. financing decision.C. leasing decision.D. capital budgeting decision. 13. A corporation, potentially, has infinite life because it A. has the same ownership and management.B. is a legal entity.C. is closely regulated.D. has limited liability.
5 Which of the following would not affect a company's net income? A change in the company's income taxes Changing the selling price of a company's product Paying a dividend to stockholders Advertising a new product
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