This is an example of Business risk.
Business risk is the business a company Invested their money into which later reduce their profit or become unsuccessful.
A company or organization that enter into business in which they are unable to gain that financial target they aim for after investing their money into the business is known as business risk.
Any Business a person, company or organization choose to enter into is a risk as you cannot actually predict what the outcome will be as to whether it will lead to financial gain or loss until you start the business.
Inconclusion This is an example of Business risk
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Answer:
Business Risk! Believe it!
Explanation:
Seneca owns an interior painting service. Seneca promises Fran, a homeowner, that Seneca will paint the outside of Fran’s house. Seneca knows that all of the painter-employees are busy for the next two months and really does not intend to paint Fran’s house. In this case, Seneca’s tortious behavior is known as:
Answer:
Promissory fraud.
Explanation:
In this scenario, Seneca owns an interior painting service. Seneca promises Fran, a homeowner, that Seneca will paint the outside of Fran’s house. Seneca knows that all of the painter-employees are busy for the next two months and really does not intend to paint Fran’s house. In this case, Seneca’s tortious behavior is known as promissory fraud.
Promissory fraud can be defined as a promise made by an individual or business entity (promisor), when in actual fact they have absolutely no intention to perform the actions or fulfil the promise when it was made the other party.
Hence, Seneca exhibited a promissory fraud because he is aware that all of the painter-employees are busy for the next two months and really does not intend to paint Fran’s house.
A business decides to produce less of an item. Which of the following occurs?
The business is attempting to indirectly influence supply.
The business is directly influencing demand.
The business is attempting to indirectly influence demand.
The business is directly influencing supply.
Answer:
c
Explanation:
Calculate China’s RGDP growth rate in 2006, the growth rate of real GDP per person in 2006 (using the approximation formula), and the approximate number of years it will take for real GDP per person in China to double if the 2006 economic growth and population growth rates are maintained.
China’s RGDP growth rate in 2006 was _______ percent. Round up your answer to the first decimal. China’s growth rate of real GDP per person in 2006 (using the approximation formula) was ______ percent. Round up your answer to the first decimal.
It will take China approximately _______ years to double its real GDP per person. Round up your answer to a full number (no decimals).
Answer:
China’s RGDP growth rate in 2006 was 8.2% percent. Round up your answer to the first decimal. China’s growth rate of real GDP per person in 2006 (using the approximation formula) was 7.7% percent. Round up your answer to the first decimal.
It will take China approximately 9 years to double its real GDP per person. Round up your answer to a full number (no decimals).
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
In 2005 China's RGDP was 7,394 billion yuan. In 2006 its RGDP was about 8,000 billion yuan. China's population was 1,306.6 million in 2005 and 1,313.1 million in 2006.
Calculate China's RGDP growth rate in 2006, the growth rate of real GDP per person in 2006 (using the approximation formula), and the approximate number of years it will take for real GDP per person in China to double if the 2006 economic growth and population growth rates are maintained.
China's RGDP growth rate in 2006 was _______ percent. Round up your answer to the first decimal. China's growth rate of real GDP per person in 2006 (using the approximation formula) was ______ percent. Round up your answer to the first decimal.
It will take China approximately _______ years to double its real GDP per person. Round up your answer to a full number (no decimals).
The explanation to the answer is now given as follows:
a. Calculate China’s RGDP growth rate in 2006. Round up your answer to the first decimal.
This can be calculated using the following formula:
China’s RGDP growth rate = (2006 RGDP - 2005 RGDP) / 2005 RGDP = (8,000 - 7,394) / 7,394 = 0.0820, or 8.2%
b. Calculate the growth rate of real GDP per person in 2006. Round up your answer to the first decimal.
This can be calculated using the following formula:
China’s RGDP per person growth rate = (2006 RGDP per person - 2005 RGDP per person) / 2005 RGDP per person ............... (1)
Where;
2006 RGDP per person = 2006 RGDP / 2006 population = 8,000 / 1,313.1 = 6.09245297387861 billion yuan
2005 RGDP per person = 2005 RGDP / 2005 population = 7,394 / 1,306.6 = 5.65896219194857 billion yuan
Substituting the values into equation (1) above, we have:
China’s RGDP per person growth rate = (6.09245297387861 - 5.65896219194857) / 5.65896219194857 = 0.077, or 7.7%
c. The approximate number of years it will take for real GDP per person in China to double if the 2006 economic growth and population growth rates are maintained. Round up your answer to a full number (no decimals).
To calculate this, the rule of 70 is used as follows:
Number of years for Real GDP per person to double = 70 / China’s RGDP per person growth rate = 70 / 7.7 = 9 years
Companies that organize their sales force by customer and territory; product and territory; product and customer; or territory, product, and customer are using a ________ sales-force structure.
Answer:
complex.
Explanation:
A complex sales-force structure is one that contains a diverse sales team design. The organizations that adopt this sales force structure are usually those that offer a diverse range of products for each type of customer and in different geographic areas, so you need to combine different types of sales force structures to achieve your sales objectives and goals. sales according to the preferences and profile of each customer in each location.
A bagel company bakes a specialty bagel that it sells by the dozen every day. These specialty bagels can only be baked early in the morning before the store opens for business. The company estimates that the daily demand (in dozens) for its specialty bagel is distributed as follows: Specialty bagels arc sold by the dozen only at a cost of $9.00 per dozen. The cost to make one bagel is $0.50. Leftover specialty bagels arc sold by the dozen the next day for a 50% discount. The optimal number of specialty bagels that should be baked tomorrow (in dozens) is:________ a) 5 dozen. b) 4 dozen. c) 3 dozen. d) 2 dozen.
Answer:
b) 4 dozen
Explanation:
The computation of the optimal number of specially bagels i.e expected value is shown below:
As we know that
Expected value = Demand × probability
= 1 dozens × 0.10 + 2 dozens × 0.15 + 3 dozens × 0.20 + 4 dozens × 0.25 + 5 dozens × 0.30
= 0.1 + 0.3 + 0.6 + 1 + 1.5
= 3.5 dozen or 4 dozen
Hence, the correct option is b.
The buyer of a futures contract is said to have a __________ position, and the seller of a futures contract is said to have a __________ position in futures. Group of answer choices margined; long short; long short; short long; short long; long
Answer: long; short
Explanation:
The buyer of a futures contract is said to have a long position, and the seller of a futures contract is said to have a short position in futures.
The buyer of a futures contract is said to have a long position as the individual wants to buy the commodity at its delivery date while the seller will deliver when it matures.
government revenue will increase if taxes are leved on --------- -perfectly elastic demand -unitary elastic demand -perfectly inelastic demand -fairly elastic demand
Answer:
If the price for an inelastic good is lowered, the demand for that good does not increase, resulting in less overall revenue due to the lower price and no change in demand
Answer:
to hard ooooooo help me bro
Financial statement data for the year ending December 31 for Navajo Company follow: Sales $2,550,000 Net income 1,258,000 Fixed assets (net): Beginning of year 800,000 End of year 985,000 The fixed asset turnover ratio for Navajo Company on December 31 would be 2.9. 2.6. 1.4. None of these choices are correct.
Answer:
Fixed Asset Turnover Ratio=2.9 Times
Explanation:
Calculation for the fixed asset turnover ratio for Navajo Company on December 31
The first step is to find the Average fixed asset
Using this formula
Average fixed assets=Beginning of year fixed assets + End of year Fixed assets/2
Let plug in the formula
Average Fixed assets =800,000+985,000/2
Average Fixed assets =$1,785,000/2
Average Fixed assets=$892,500
The next step is to calculate for the Fixed asset turnover ratio
Using this formula
Fixed asset turnover ratio=Sales/Average
Let plug in the formula
Fixed Asset Turnover Ratio=$2,550,000/$892,500
Fixed Asset Turnover Ratio=2.9 Times
Therefore fixed asset turnover ratio for Navajo Company on December 31 will be 2.9 Times
How have people been lately good? bad? something else?
Answer:
People have been very bad lately
Frank wants to add contact information for his references to his resume what should he obtained before including this contact information
A.Training certificates
B. Each person’s approval
C. Experience letter
D. Membership certificates.
Answer: B
Explanation: You should always contact someone before you list them as a reference to confirm that they are comfortable giving you a good recommendation if the potential employer contacts them, and also to confirm that you are listing the correct contact information on your resume.
X Company acquired land in Costa Rica for a total cost of $45,000,000. Engineers conducted a study at an additional cost of $500,000 to determine that there were oil reserves that should yield approximately 1,000,000 barrels of oil. The purchase agreement includes a requirement that the land be restored when the oil has been extracted, which is expected to cost $1,300,000, after which the land is expected to be worth $4,500,000. In 20X2, X Company incurred $200,000 in development costs and extracted and sold 130,000 barrels of oil. How much depletion will X Company recognize during 20X2
Answer:
X Company will recognize $819,000 depletion in 20X2.
Explanation:
Depletion Expense = (Cost - Salvage Value) × (Period`s Production / Total Expected Production)
= ($45,000,000 + $500,000 + $1,300,000 - $4,500,000) / ( 130,000 / 1,000,000)
= $819,000
Note : Cost of Land Includes Purchase Price and any costs directly incurred in placing the land in condition required for operation by management as well as decommissioning costs.
The senior management of BonusOne Bank formulates a new set of strategic plans for the next financial year and conveys it to the middle management. The middle management, in turn, conveys the same to their respective subordinates. In the context of communication channels, the given scenario illustrates _____.
Complete Question:
The senior management of BonusOne Bank formulates a new set of strategic plans for the next financial year and conveys it to the middle management. The middle management, in turn, conveys the same to their respective subordinates. In the context of communication channels, the given scenario illustrates?
Group of answer choices
A) downward communication
B) upward communication
C) horizontal communication
D) informal communication
Answer:
A) downward communication.
Explanation:
In this scenario, the senior management of BonusOne Bank formulates a new set of strategic plans for the next financial year and conveys it to the middle management. The middle management, in turn, conveys the same to their respective subordinates. In the context of communication channels, the given scenario illustrates a downward communication.
A downward communication can be defined as the formal flow of information and messages within an organizational hierarchy; which is mainly from a higher level (senior management) of an organization to a lower level (middle management) and lastly, to the least (subordinates).
When downward communication are effectively and properly used in an organization, it helps them to achieve their aims, goals and objectives successfully.
A store that advertises a buy-one-get-one-free sale is
Answer:
sales promotions
Explanation:
Sales promotions are the steps taken to increase the purchase of the products by adding an incentive to the customers. Buy-one-get-one-free is one of the sales promotions. Here two products are sold in the cost of one. The customer is provided with the benefit of getting two products by giving the amount of one. It is the promotions in which quantity plays a crucial role.
Answer:
sales-oriented
Explanation:
I just got it right.
The Cooke family has worked for various General Motors's divisions for over four decades. Bennett Cooke works at the Cadillac division. Rondella Cooke works at the Buick division. Their son Tyrone works at the Corvette plant, and their daughter Niome works at the Saturn plant. The Cooke family could tell you that GM is departmentalized by:
Answer:
Product
Explanation:
Since in the question it is mentioned that Cooke family worked in the various division like Bennett Cooke works at the Cadillac division and like this other its family working in different divisions
So here it is focused on a single product that could be sold by different divisions
Therefore it is departmentalized by product
All the following statements concerning the interest settlement option in life insurance are correct EXCEPT: Group of answer choices the beneficiary may be allowed to withdraw part or all of the proceeds. the beneficiary may be allowed to change to another settlement option. the minimum guaranteed interest rate usually is equal to the prime rate. the interest can be paid monthly, quarterly, semiannually, or annually.
Answer:
the minimum guaranteed interest rate usually is equal to the prime rate.
Explanation:
Interest settlement in a life insurance policy involves the insurance company maintaining proceeds from the policy and investing it.
The policy holder is promised a minimum interest rate.
However there is no guarantee that the minimum interest rate will be equal to prime interest rate. Prime interest rate is the official lending rate that is given by banks.
The payment of interest can be monthly, quarterly, semiannually, or annually.
Beneficiary can withdraw all or part of the proceeds, and he has the option of switching to another settlement method.
A key process topic that should be part of early discussions regarding ground rules is appropriate decision making and problem solving, ensuring that the project manager and core team understand who makes each type of decision and how those decisions are made.
a. True
b. False
Answer: true
Explanation:
From the question, we are informed that a key process topic that should be part of early discussions regarding ground rules is appropriate decision making and problem solving, ensuring that the project manager and core team understand who makes each type of decision and how those decisions are made.
This is true. It should be noted that for a project manager to achieve his or her goals, the person must be a problem solver and have what it entails to succeed.
Jessica invested her savings in two investment funds. The amount she invested in Fund A was $8000 less than the amount she invested in Fund B. Fund A returned a 2% profit and Fund B returned a 8% profit. How much did she invest in Fund B, if the total profit from the two funds together was $2140
Answer:
23,000
Explanation:
Jessica invested her savings in two investment funds
The amount that she invested in fund A was $8000 than the amount invested in fund B
A + B = -8000.......... equation 1
Fund A returned 2% profit and fund B returned 8% profit
2/100= 0.02 , 8/100= 0.08
0.02A + 0.08B= 2140.............equation 2
From equation 1
A -B= -8000
A= -8000+B
Substitute -8000-B for A in equation 2
0.02(-8000+B) + 0.08B= 2140
-160+0.02B + 0.08B= 2140
-160 + 0.1B= 2140
Collect the like terms
0.1B= 2140+160
0.1B= 2300
B= 2300/0.1
B= 23,000
From equation 1
A-B= -8000
A= -8000+B
Substitute 23,000 for B
A = -8000+23000
A= 15,000
Hence Jessica invested 23,000 in fund B
Dervish Company uses LIFO for all of its inventories. During its second quarter of 2009, Dervish experienced a LIFO liquidation. Dervish fully expects to replace the liquidated inventory in the early part of the third quarter. How should Dervish report the inventory temporarily liquidated on its income statement for the second quarter
Answer: The cost of the goods that are sold for the second quarter should consist of the expected replacement cost of the goods that are temporarily liquidated.
Explanation:
From the question, we are informed that Dervish Company uses LIFO for all of its inventories and that during its second quarter of 2009, Dervish experienced a LIFO liquidation. We are further told that Dervish fully expects to replace the liquidated inventory in the early part of the third quarter.
When Dervish is reporting the inventory temporarily liquidated on its income statement for the second quarter, the cost of the goods that are sold for the second quarter should consist of the expected replacement cost of the temporarily liquated goods.
Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases on June 30, which will be paid during July, total $139,398. Salaries, Advertising and Rent Payment expenses are all paid in cash in the month incurred. Depreciation expense is shown on the income statement each month. Equipment costing $10,498 will be purchased for cash during August. Calculate total cash payments budgeted for August.
Answer:
A lot of information is missing, so I looked for a similar example. If the numbers are not exactly the same, just adjust the differences.
Direct materials purchases:
July $152,000August $164,00020% of accounts payable paid during the month, 80% paid next month.Salaries, Advertising and Rent (paid during the month):
salaries $35,090advertising $12,000rent $8,000debt payments $1,550 (interests)Depreciation expense is not included because it is not a cash outflow.
Other purchases:
Equipment for $10,498Fein Company
Schedule of Cash Payments
For the Month of August 202x
Direct materials:
From July purchases $121,600
From August purchases $32,800
Total direct materials $154,400
Other purchases:
Equipment for $10,498
Total other purchases $10,498
Fixed expenses:
Salaries $35,090
Advertising $12,000
Rent $8,000
Interests on debt $1,550
Total fixed expenses $56,640
Total cash payments $221,538
The government decides to increase its expenditures by $350. The multiplier in this economy is 4 and the tax rate is 22 percent. The net effect of this expansionary fiscal policy is to: Group of answer choices
Answer:
Increase the budget shortage by $42
Explanation:
The government decides to increase expenditure by $350
The multiplier in the income is 4
The tax rate is 22%
= 22/100
= 0.22
The first step is to calculate the increase in income
= $350×4
= 1,400
The tax revenue which will be derived from the new income can be calculated as follows
= 0.22×1,400
= 308
Therefore, the net effect can be calculated as follows
Net effect= $350-$308
= $42
Hence the net effect of this expansionary fiscal policy is to make an increase in the budget shortage by $42
Mr. Green purchased a property with the provision in the sale agreement that the seller would provide him with a warranty deed. At closing, the seller refused to provide better than a bargain and sale deed. If Mr. Green insists on buying the property and insists on the seller giving him a warranty deed he can attempt to force the seller to do so by filing a suit for:_________.
Answer:
specific performance
Explanation:
Specific performance in relation to confidential information is commonly used as a prohibition relief Specific performance is the equivalent compensation in contract law, under which a party issues orders requiring a party to perform a specific action, which is the execution of the contract. It is usually available for sale under the Land Act, but is generally not available if the damage is an appropriate option. If the seller fails to sell or the property is handed over to the seller, the buyer receives a specific performance under the provisions of the Specific Relief Act, 1963. A similar right is available under the seller. The contract requires specific performance from the buyer.Johnstone’s Realty is a new discount, menu-based brokerage firm. Its approach usually results in a lower listing commission rate than other firms offer. Johnstone’s also offers a lower cooperating brokerage split than most other firms. Business is booming for Johnstone's, and the remaining firms in town are concerned. These brokers agree to not show Johnstone’s listings to their buyer clients. What is this an example of?
Answer:
"Group boycotting " is the right solution.
Explanation:
Team or group boycott corresponds to something like an organization's decided reluctance to work with some other company unless they prevent from working with such a possible rival attempting to expand the marketplace. This seems to be an accepted-upon reluctance by rivals to negotiate with another company unless someone prevents people from negotiating with a possible opponent pursuing market entry.So that the given scenario would be an example of Group boycotting.
Three Point Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA).
For the first 6 months of 2017, the company reported the following operating results while operating at 80% of plant capacity and producing 119,400 units:
Sales $4,656,600
Cost of goods sold 3,684,708
Selling and administrative expenses 526,292
Net income $445,600
Fixed costs for the period were cost of goods sold $ 960,000 and selling and administrative expenses $ 266,000.
In July, normally a slack manufacturing month, Three Point Sports receives a special order for 10,000 basketballs at $ 28 each from the Greek Basketball Association (GBA).
Acceptance of the order would increase variable selling and administrative expenses by $ 0.77 per unit because of shipping costs but would not increase fixed costs and expenses.
Required:
(a) Prepare an incremental analysis for the special order.
(Round all per unit computations to 2 decimal places)
Reject Order Accept Order Net Income Increase (Decrease)
Revenues $ $ $
Cost of goods sold
Selling and administrative expenses
Net income $ $ $
(b) Should Three Point Sports Inc. accept the special order?
(c) What is the minimum selling price on the special order to produce net income of $5.16 per ball?
(Round answer to 2 decimal places)
Answer:
a) incremental analysis
normal selling price = $39 per ball
variable costs per unit:
variable COGS $22.82variable S&A $2.18 + $0.77 = $2.95special order for 10,000 balls at $28
INCREMENTAL ANALYSISwithout special with special differential
order order amount
sales revenue $0 $280,000 $280,000
COGS $0 $228,200 $228,200
S&A expenses $0 $29,500 $29,500
Net income $0 $22,300 $22,300
b) The special order should be accepted because it increases operating profits by $22,300
c) current margin = $2.23 per ball
sales price to produce net income of $5.16 per ball = $28 + ($5.16 - $2.23) = $30.93 per ball
A. an incremental analysis of $2.95
B. Increases operating profits by $22,300
C. The minimum selling price is $30.93 per ball
Calculation of Fixed costsa) The incremental analysis
Then, normal selling price = $39 per ball
variable costs per unit:
variable COGS $22.82
Therefore, variable S&A $2.18 + $0.77 = $2.95
special order for 10,000 balls at $28
INCREMENTAL ANALYSIS
without special with special differential
order order amount
sales revenue $0 $280,000 $280,000
COGS $0 $228,200 $228,200
S&A expenses $0 $29,500 $29,500
Net income $0 $22,300 $22,300
b) When The special order should be accepted because it increases operating profits by $22,300
c) Then, The current margin is = $2.23 per ball
After that sales price to produce net income of $5.16 per ball is = $28 + ($5.16 - $2.23) = $30.93 per ball
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Assume the following: (1) the interest rate on 6-month treasury bills is 8 percent per annum in the United Kingdom and 4 percent per annum in the United States; (2) today's spot price of the pound is $1.50 while the 6-month forward price of the pound is $1.485.If the price of the 6-month forward pound were to ____, U.S. investors would no longer earn an extra return by shifting funds to the United Kingdom.a. Rise to $1.52b. Rise to $1.53c. Fall to $1.48d. Fall to $1.47
Answer:
d. Fall to $1.47
Explanation:
currently you will need $1,500 to purchase £1,000 and invest in British bonds. After 65 months you will have £1,040, which you should be able to convert into $1,544.40. If you invested in US bonds, you would have $1,530, so this arbitrage will yield $14.40.
But if instead the British pound fell to $1.47, then your profit would only be $28.80, less than if you invested in US bonds. You again would have £1,040 in 6 months, but that would only be equal to $1,528.80.
Grey Corporation has $100,000 of accounts receivable on December 31. The unadjusted balance of its Allowance for Doubtful Accounts is a credit of $1,000. Experience suggests 5 percent of its receivables will be uncollectible. The amount that should be debited to Bad Debt Expense and credited to Allowance for Doubtful Accounts in the year-end adjusting entry is:
Answer: $4000
Explanation:
Amount receivable = $100,000
Allowance for uncolletible account at 5%= 5% x 100,000 =$5000
Adjusted balance for Allowance for doubtful accounts = credit of $1000
Bad Debit Expense = Allowance for uncolletible account - Adjusted credit balance on doubtful accounts=$5000-$1000= $4000
JOURNAL ENTRY
Date Accounts Debit Credit
31 Dec Bad Debts $4000
Allowance for doubtful account $4000
Suppose that the four firms are colluding by acting like a monopolist, with each firm producing one-fourth of the market output. If one of the firms cheats on the cartel agreement and produces an additional unit of output, the profits of each of the compliant firms go from:
Complete Question
The complete question is shown on the first uploaded image
Answer:
the correct answer is (b) decrease from $16 to $14
Explanation:
In order for profit to be maximized by a monopolist quantity produce will be MR = MC
from above graph MR = MC when Quantity = 8. As they are all producing equal portion of market output Hence Each firm will produce Q = 8/4 = 2 units.
When Market quantity = 8 then price they are getting = 12 per unit (From demand curve)
As there is no fixed cost and MC is constant => Total variable cost = MC*Q = 4Q
=> Total cost(TC) = Total fixed cost + total Variable cost = 0 + 4Q = 4Q
Total revenue = Price * quantity = PQ = 12Q
Hence Profit = 12Q - 4Q = 8Q and as Q = quantity per firm = 2
=> Profit they are earning = 8*2 = 16.
Now Suppose one firm cheats and hence now total quantity produces and sold = 2*3 + 3 + 9.
When Market quantity = 9 then price they are getting = 11 per unit (From demand curve).
Now, Profit = TR - TC = 11Q - 4Q = 7Q and Q remains same for those firms who didn't cheat.
So, Now profit = 7Q = 7*2 = 14.
Thus, If one of the firms cheats on the cartel agreement and produces an additional unit of output, the profits of each of the non cheating firms will decrease from $16 to $14.
The absolute value of the price elasticity of demand for ground beef has been estimated to be 0.5. If mad cow disease strikes the United States and a large percentage of the cattle are removed from the market, how will that affect total expenditures on hamburger, all other things equal
Answer:
total expenditure would increase
Explanation:
the demand for ground beef is inelastic.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one.
As a result of the disease, the supply of ground beef would fall. this would lead to a hike in the price of ground beef. But since demand for ground beef is inelastic, the the fall in demand would be less than the rise in price, so total expenditures would rise.
The return on common stockholders’ equity is computed by dividing a) net income less preferred dividends by ending common stockholders’ equity. b) net income less preferred dividends by average common stockholders’ equity. c) net income by ending common stockholders’ equity. d) net income by average common stockholders’ equity.
Answer:
b) net income less preferred dividends by average common stockholders’ equity
Explanation:
Common stock dividends in a company is paid to stockholders after preferred dividends have been removed.
Preference shares are issued to investors with an agreement that they will recieve dividends before other shareholders.
So when calculating return on common stockholder's equity we will first deduct dividend paid to preference share holders.
The income coming to common share holders is now divided by average common stockholders equity to get the return on common stock equity.
Return on equity is usually used as a measure of how efficiently management uses company's assets to generate profits.
4. Write 5 examples for each of small, medium and large occupation categories. help please
Small and mid-size enterprises are businesses that maintain revenues, assets or a number of employees below a certain threshold. Each country has its own definition of what constitutes a small and medium-sized enterprise Certain size criteria must be met and occasionally the industry in which the company operates in is taken into account as well.
ABC Furniture Company wishes to raise capital by issuing some securities in its home state. The CEO of the company feels that registration with the Administrator is unnecessary because the issue is exempt. Should ABC be ordered to appear at a hearing, the burden of proving its issue is exempt is on
Answer: The company
Explanation: The burden of proving the exemption issued by the CEO of ABC furniture should ABC be issued to appear at an hearing in other to defend its stance on the exemption issued will be on the company. Even though the the exemption was made by the Chief Executive Officer of the company. The burden of proof lies on the shoulder of the corporation which requests for the exemption and not the individual who make the exemption request on behalf of the corporation which is the corporation's CEO and not the Administrator on which exemption was made. Thus proving the legality of an exemption always rests on the shoulder of the requesting corporation.