Explain why a business's liquidation value would be different from its going concern value. because the liquidation value contains the value of any real estate holdings, while the going concern value does not because the going concern value contains intangible, non- transferable assets like goodwill, while the liquidation value does not because the liquidation value includes the cost of the broker's commission, while the going concern value does not because the going concern value is calculated using replacement value, while the liquidation value is calculated using the cost method

Explain why a business's liquidation value would be different from its going concern value. because the liquidation value contains the value of any real estate holdings, while the going concern value does not because the going concern value contains intangible, non- transferable assets like goodwill, while the liquidation value does not because the liquidation value includes the cost of the broker's commission, while the going concern value does not because the going concern value is calculated using replacement value, while the liquidation value is calculated using the cost method

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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TheWod Chemical Company produces a chemical compound that is used as a lawn fertilizer. The compound can be produced at a rate of 10,000 pounds per day. Annual demand for the compound is 0.6 million pounds per year. The fixed cost of setting up for a production run of the chemical is $1,500, and the variable cost of production is $3.50 per pound. The company uses an interest rate of 22 percent to account for the cost of capital, and the costs of storage and handling of the chemical amountto 12 percent of the value. Assume that there are 250 working days in a year.a. What is the optimal size of the production run for this particular compound?b. What proportion of each production cycle consists of uptime and what proportion consists of downtime?c. What is the average annual cost of holding and setup attributed to this item? If the compound sells for $3.90 per pound, what is the annual profit the company is realizing from this item?
Ken is an appraiser who was hired to appraise a single-family home. Ken's subject property is similar to many of the houses in the neighborhood since much of the neighborhood was built around the same time. Why would the sales comparison approach be the most effective valuation method for Ken? ○ Since the cost to rebuild the property can easily be determined, the sales comparison approach should be used, Since the property has the potential to be rented out, the sales comparison approach should be used. Residential properties are typically valued using the sales comparison approach, and Ken will most likely have several comparable properties to use to value the subject property. The cost approach should be used by Ken rather than the sales comparison approach.
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The usual face value for most corporate bonds is $5,000.; True or False
Russell United has 28,500 shares of stock outstanding and has two open seats on its board of directors. Each share of common stock is granted one vote. How many additional votes are required to guarantee a seat on the board if the company were to use straight voting rather than cumulative voting?
Harmony is the Senior accountant of a Bank. Junior accountants of all the branches report to her. While preparing for the final quarter sales report, she finds that two out of the four branches have failed to achieve the sales targets for the second consecutive quarter. According to the company policy, the branches that fail to achieve targets in two consecutive quarters have to be closed. Harmony feels sad for all the people losing their jobs and decides that she will overstate the sales revenue generated by every branch and report manipulated figures in the financial statements. Answer the following questions. Describe Harmony’s actions from ethical standpoint. Is she doing the right thing? What can be the consequences of Harmony’s actions. What are the risks involved? What would you suggest to Harmony?
With fully explain why statement is true and why false
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