Structural subordination occurs when O There is a holding company and a group lends to its operating subsidiary One group lends to a holding company and there is no debt at its operating subsidiaries One group lends to an operating subsidiary on an unsecured basis O One group lends to a holding company and another group lends to its operating subsidiary

Q: What are the legal requirements for a company to engage in a merger or acquisition?

A: Company law, also known as corporate law or business law, refers to the body of legal rules and…

Q: One reason that a firm would choose to merge or acquire another company would be to gain market…

A: Merger and acquisition (M&A) is a general term used to describe the consolidation of companies…

Q: The following are examples of debt financing EXCEPT: Taking a loan from a family member Taking a…

A: Debt financing is when a business borrows money with the intention of repaying it with interest at a…

Q: profits that have been eared by a compony but not distributed to the shareholders will increase the…

A: In the context of corporate finance and accounting, the retention of profits can have a significant…

Q: Which of the following business forms is likely to present the greatest risk to an expanding firm in…

A: Managing the business will be the main motive of any entrepreneur. The managers will help the top…

Q: Which ones of the following are primary market transactions? (mark all that applies) ✔ An initial…

A: The primary market is the market where new securities are created. The company firms sell new stocks…

Q: Mergers and Acquisition can take place through the following ways except a. Purchasing assets O b.…

A: Acquisition- The acquisition is a corporate strategy in which, one firm acquires the other firm to…

Q: corporation is obligated to pay dividends to its shareholders the same way it has to make gular debt…

A: In the realm of corporate finance, the relationship between corporations, their shareholders, and…

Q: Why is it not possible to incorporate a S-corporation for the purpose of forming a Real Estate…

A: S- corporation is recommended to the small business seeks advice to structure their businesses. S…

Q: Most mergers are horizontal in nature in order to avoid the potential antitrust complications…

A: The correct is TRUE.

Q: Which of the following types of mergers goes against the antitrust policy? A cash purchase A…

A: The correct option is C: A horizontal merger. The horizontal merger takes place between the two…

Q: The complete absorption of one company by another, wherein the acquiring firm retains its identity…

A: Organizations are global these days. The organizations are trying to gain a competitive advantage…

Q: The combining of two or more companies, generally by offering the stockholders of one company…

A: Answer-Merger   A merger refers to an agreement. It is a mutually binding contract in which two…

Q: a Company A and Company B are identical except that Company A's costs are mostly variable, whereas…

A: Variable costs rise along with rising sales. Expenses at Company A are almost always variable,…

Q: Why does the Company performs the Function of dividend Payment itself that Only the small…

A: A dividend-paying agent also known as a disbursing agent is hired by the company to make dividend…

Q: Investment X offers to pay you $4,500 per year for nine years, whereas Investment Y offers to pay…

A: The timelines are:   To find the PVA, we use the equation: PVA = C({1 – [1/(1 + r)]^t } / r )

Q: Which of the following assets is classified as Trading Stock? Select one: Property acquired by an…

A: Trading stocks are recorded on the asset side of the balance sheet of a company. Trading stocks are…

Q: When an asset can be easily and rapidly converted into cash without substantial loss of value, the…

A: A type of asset that can be easily converted into cash and also at the same time there is no loss of…

Q: Forms of business ownership refer to the legal structures under which a business operates. There…

A: The choice of the form of ownership is a crucial decision for any business, as it determines the…

Q: Risk management is an important facet of corporate governance. The ultimate responsibility for…

A: According to the OECD, chance management is a key element of company governance, and the board of…

Q: If a bank is compiling lists of current stockholders and bondholders for the purpose of remitting…

A: ANS: 1. Bank is acting as a Paying agent as per following explanation: What is paying agent? In…

Q: Suppose you had inside information that your employer was thinking about declaring bankruptcy, and…

A: In the ethical dilemma described, you find yourself in a precarious situation where you possess…

Q: Cleveland Corporation has 100,000 shares of common stock outstanding, its net income is $750,000,…

A: Earnings per share is the profit of the company derived from per outstanding share of common stock.

Q: customers are the bill-paying receivers of a company's work. A) External B) Internal C) Primary D)…

A: The answer is as follows:

Q: Which of the following is not true in terms of contributing positively to the business model of…

A: Leasing refers to a contractual agreement in which one party leases an asset to another party. It…

Q: You are interested in starting your own business, you have been advised to register the business as…

A: Process and requirements involved in starting limited company: Selecting the place to start…

Q: Properties, things and receivables having certain value owned by business are called: Assets Goods…

A: Properties, things and receivables having certain values owned by the business is known as assets.

Q: In Georgia, when should the lender be notified that a seller is offering a loan assumption? When the…

A: A supposition condition is an arrangement in a home loan contract that permits the merchant of a…