п»їACC 291 Week 3 Dialogue Questions and Responses
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Week a few:
DQ1: Listed below are characteristics of the corporation: (a) separate legal existence, (b) limited the liability of stockholders, and (c) transferable ownership rights. Describe these characteristics. The R& D label of Healy Chemical substance Corp. has just developed a chemical pertaining to sterilizing the vicious Brazilian " killer beesвЂќ that happen to be invading South america and the the southern part of states states. The director of Healy is stressed to get the chemical substance on the market to boost Healy's profits. He feels his work is in peril because of reducing sales and profits. Healy has an possibility to sell this chemical in Central American countries, in which the laws are much more comfortable than in the usa. The movie director of Healy's R& D division firmly recommends additional testing inside the laboratory intended for side-effects with this chemical in other bugs, birds, animals, plants, and even humans. This individual cautions the president, " We could end up being sued via all sides in the event the chemical offers tragic side effects that we didn't even check for in the labs. вЂќ The director answers, " We cannot wait an extra year to your lab tests. We could avoid deficits from this kind of lawsuits by establishing a different wholly owned corporation to shield Healy Corp. by such law suits. We can't lose any more than our investment in the new corporation, and we'll invest just the obvious covering this kind of chemical. Most of us reap the benefits if the chemical works and is safe, and avoid the losses coming from lawsuits whether it's a disaster. вЂќ The following week Healy provides an impressive new totally owned corporation called Dryden Inc., provides the chemical substance patent to it to get $10, and watches the spraying start. (a) Are definitely the president's motives and activities ethical?
(b) Can Healy shield itself against loss of Dryden Inc.?
DQ 2: Class, the statement of cash goes is the simply required economical statement which is not prepared from an altered trial balance. What are the sources of data for organizing a statement of cash flows? Make clear how the accrual basis of accounting affects the statement of cash flows. DQ3: What are three reasons why firms purchase purchases of debt or perhaps stock investments? Why will a corporation possess excess funds that it does not need for businesses? What is the conventional investment the moment investing funds for brief periods of time? DQ4: What are the normal investments the moment investing cash to generate revenue? Why will a company invest in securities that offer no current cash goes? What is the typical stock expenditure when investment cash for strategic factors?
ACC 291 Week a few Discussion Questions and Replies
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DQ1: The following are characteristics of a corporation: (a) individual legal existence, (b) limited liability of stockholders, and (c) transferable ownership legal rights. Explain these characteristics. The R& G division of Healy Chemical Corp. has just produced a chemical for sterilizing the bad Brazilian " killer beesвЂќ which are invading Mexico and the southern says of the United States. The president of Healy is usually anxious to have the chemical available to boost Healy's profits. This individual believes his job is in jeopardy due to decreasing profits. Healy has an opportunity to sell this chemical substance in Central American countries, where the regulations are much even more relaxed as compared to the United States. The director of Healy's R& D division strongly suggests further screening in the lab for side effects of this substance...