Item 3 Which private company would benefit from using ASPE rather than IFRS? Multiple Choice company with a control block who owns the majority of the business company with operations internationally company interested in debt/equity financing in the external market company whose parent company is a major public corporation
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Item 3 Which private company would benefit from using ASPE rather than IFRS?
Multiple Choice
company with a control block who owns the majority of the business
company with operations internationally company interested in debt/equity financing in the external market
company whose parent company is a major public corporation
Step by step
Solved in 3 steps
- Multiple Choice Questions: Which of the following assist companies in raising capital, advise firms on major transactions such as mergers or financial restructuring, and engage in trading and market making activities? Investment Banks Securities Exchanges Mutual Funds Commercial Banks1 Which of the following is least likely to be a financial intermediary? A. Finance companies 8, Mutual funds C. Pension funds D. Investment banks E. Savings banks 2 Which of the following do not have corporate stock ownership? A. Commercial banks B. Savings and loan associations C. Savings banks D. Credit uniong O All of the above 3. A financial institution that raises funds by issuing shares to the public and invests the proceeds in a diversified portfolo for a management fee is: A. Banks B. Pension FundyC)Mutual Funds D. Financn companies E. None of the above - 4. One of the following types of financial instruments derive their value from other instruments (underlying assets) A. Cash instruments B. Equity instruments O Derivative instruments D. Debt instrumentsASSIGNMENT REVIEW QUEST IONS Direction: Answer comprehensively the following questions. 1. Why should corporate governance be in place? 2. In a large corporation, what are the two distinct groups that report to the chief financial officer? Which group is the focus of corporate finance? 3. Would our goal of maximizing the value of the equity shares be different if we were thinking about financial management in a foreign country? Why or why not?
- Which one of the following is prime objective of holding company? To create monopoly company To control investments of competitors To hold shares and manage other companies To restrict the rights of other companies3. What are the stages in organizing a corporation? 4. What are the basic rights of a shareholder? 5. "what are the considerations that may be received in exchanged for share capital? What are the measurement bases for such exchanges? 6. Differentiate an ordinary share capital from a preference share capital.Q5 Which of the following options is correct? Select one: a. Equity represent the net assets of the entity b. An entity can always redeem its shares when it has the excess resources to do that c. Long-term liabilities are part of the owners’ equity d. Preference shareholders are the last to be satisfied among all the stakeholders of the business entity.
- __________ entail the creation of a third-party legal entity, whereas __________ do not. Licensing agreements; joint venturesJoint ventures; strategic alliancesStrategic alliances; joint ventures Franchising agreements; strategic alliancesWhich of the following is closest to IFRS 3 Business Combinations definition of control? A company is deemed to have control over another only when it owns a majority of the voting shares of another company. B. A company is deemed to have control when it can elect a majority of the Board members of another company. C. Control is the ability to direct the activities of a company that most significantly affect the investor's returns. D. Control exists only when a company has the continuing power to determine the operating and financing policies of another company and attempts to exercise such powers.Which of the following forms of business organization can finance its operation through acquiring bank term loan and by issuance of equity securities? General Professional Partnership Single proprietorship Limited partnership Corporation
- TOPIC: Introduction to Financial Management 1. Which of the following can be accepted as main points to note when it comes to a company's financial objective? O It is generally accepted that the main financial objective of a company should be to maximize (or at least increase) shareholder wealth. O There are practical difficulties in selecting a suitable measurement for growth in shareholder wealth. Financial targets such as profit maximization and growth in EPS might be used, but no financial target on its own is ideal. O Financial performance is therefore assessed in a variety of ways: by the actual or expected increase in the share price, growth in profits, growth in EPS, and so on. 2. Which of the following statement/s depicts agency relationships and conflicts? I. The owners expect the agents to act in the best interests of the owners. Ideally, the 'contract' between the owners and the managers should ensure that the managers always act in the best interests of the…Name a medium sized United States private company, its operations, and the industry it operates in to assess its suitability for going public. Determine based on the the company's financial statement performance along with it's potential for growth to assess if it should remain privately held or pursue an initial public offering.Which of the following may provide evidence of significant influence even if the percentage of ownership interest is less than 20\% ? Representation on the board of directors or equivalent governing body of the investee Participation in policy-making processesincluding participation in decisions about dividends or other distributions transactions between the investor and the investee IV Interchange of managenal personnel V. Provision of essential technical information.