If the shareholder’s position is not protected by a contract – unlike the provider of debt- how is it in fact made viable? Discuss
Q: if the shareholders position is not protected by a contract unlike the provider of debt how is it in…
A: A shareholder seems to be a person or organization who holds stock in a corporation. Shareholders…
Q: Which one of the following is other indicator or events or conditions that may cast significant…
A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What does the phrase "limited liability" mean in a corporate context?
A: Limited liability means owners liability is limited to the invested capital in the firm.
Q: Compare and contrast how corporations use interest swaps and forward contracts.
A: Interest swaps and forward contracts : Interest swaps are a kind of forward contracts where future…
Q: equity-based compensation contracts.
A: Compensating employees with equity has become the best compensation plan for attracting talented and…
Q: Why would the existence of conditions subsequent and precedent affect the discharge of a contract?
A: A contract is an agreement between more than one person to perform the duties mentioned in the…
Q: What does “ Shareholders Limited Liability “ Mean ?
A: Shareholders are the persons who own the company and have a right to vote in the event of making…
Q: 1. When a shareholder receives a noncash distribution of property that is encumbered by a liability…
A: An individual or a corporation who is the owner of the company is known as a shareholder.…
Q: A shareholder will succeed on a derivative suit if a director does not violate the business judgment…
A: A business judgment rule is that the decisions made by directors are taken after considering the…
Q: Debt covenants are least likely to place restrictions on the issuer’s ability to:A . pay dividends.B…
A: Introduction: Debt covenants are arrangements between a corporation and a creditor normally defining…
Q: What is fairness (in bankruptcy)?
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A: The following statements are correct: Statement a as per Article 2134 Statement c as per Article…
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Q: A debt restructuring that involves a modification of terms and does not require court approval may…
A: A debt restructuring that involves a modification of terms and does not require court approval may…
Q: Corporations offer the advantage of limited liability. Explain what is meant by that statement.
A: Corporation: A business concern where there is a separate legal entity, and are owned by…
Q: the stakeholders position is not protected by a contract -unlike the provider of debt- how is it in…
A: Shareholders are the individuals who get ownership of the organization when they invest in their…
Q: Limited liability is a disadvantage of corporation companys? true or false
A: Limited liability refers to the term that means in case of insolvency of the business, personal…
Q: What is the difference between a covenant not to compete in a contract versus a covenant not to…
A: Covenant A covenant is a formal legal agreement between two parties for doing or not doing some…
Q: Will the death of the principal debtor convert, decrease or nullify the substantive right of the…
A: Principal Debtor describes the natural individual or legal entity whose name appears on the…
Q: Give examples of obligations or contracts which are contrary to law .
A: The contract is an agreement forming a relationship between two parties in such a way that if any of…
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A: A sole proprietorship is the simplest form of business that an individual can do or operate. It is…
Q: Is there any exception to the rule that the particular motives of the parties in entering into a…
A: A motive is a purely personal or private reason which a party has in entering into a contract. The…
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A: IFRS 9, deals with Financial Instruments. It provides for measurement and classification of various…
Q: When from among the choices available only one is possible, the obligation in effect ceases to be…
A: Answer:- True Explanation:- When from the choices available only one of the choice is possible, the…
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A: Real estate investing: Real estate investing is defined as the acquisition of property as an…
Q: What is a deficiency judgment and how is its value to a lender affected by the Bankruptcy Code?
A: Bankruptcy is filed by a debtor who is unable to repay its creditors. In case a person files for…
Q: Why debtors control should always stay on debtor's control?
A: Debtor is the customer that has purchased goods and services on credit and owes money to the seller…
Q: What makes product warranties considered as contingent liabilities? Also, what Generally Accepted…
A: Contingent Liability is a liabilty that may arise in outcome of future uncertain amount.
Q: Compare and contrast how corporations use interest swaps and forward contracts. Give an example of a…
A: Interest rate swaps are a derivative instrument based on a comparative benefit premise. Try to…
Q: Suppose the obligation of the debtor is to do something and he fails to do it or performs it in…
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Q: Under what circumstances is a contingent liability reflected in the accounting records as though an…
A: Contingent liability: Liability that can occur in future depending on the outcome of an uncertain…
Q: An entity is solvent if it can pay its currently maturing obligation.
A: Solvency: Solvency is the ability of a company to pay off its debts using assets in other words the…
Q: In explaining the meaning of obligation in the definition of a liability, the Conceptual Framework…
A: when a liability arises to pay the amount than obligations will arise.
Q: director liability?
A: yes Directors square measure agents of the corporate in transactions they enter into on behalf of…
Q: What are the effects on creditors, including secured creditors during voluntary administration?…
A: creditors are those person supply goods or services to the company, provide loan to the company,…
Q: For a liability to be recognised within the financial statements, it needs to be reasonably apparent…
A: As per IFRS a liability is that the future payment of which results…
Q: A company can have a liability even if the amount of the obligation is unknown. O True O False
A: Liabilities are current obligations as a result of past transactions or events. Liabilities are…
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A: The question pertains to which of the two scenarios would be a more conservative approach : 1.…
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A:
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A: Generally directors of a company are vested with more powers compared to members. Under statutory…
If the shareholder’s position is not protected by a contract – unlike the provider of debt- how is it in fact made viable? Discuss
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- If the stakeholders position is not protected by a contract -unlike the provider of debt- how is it in fact made viable?The relationship between a banker and its customers are not only fiduciary in nature but contractual as well. Therefore under any contractual terms, there exist terms and conditions, also known as an exclusion clause to protect the maker of the statement. With regards to case law, explain the rules of “incorporating” an exclusion clause in order for it to work.What are the advantages and disadvantages of equity-based compensation contracts.
- Which of the following is an example of protective rights? Rights to appoint or remove another entity that directs the relevant activities The right of a party holding a non-controlling interest in an investee to approve the issue of equity or debt instruments Rights to veto any changes for the benefit of the investor All of the choicesWhy does the shareholder liability limited?What tools are available for solving adverse selection and moral hazard problems in debt contracts and in equity contracts?
- Which of the following is characteristic of liabilities ratherthan of equity? (More than one answer may be correct.)a. The obligation matures.b. Interest paid to the provider of the capital is deductiblein the determination of taxable income.c. The capital providers’ claims are residual in the eventof liquidation of the business. d. The capital providers normally have the right to exer-cise control over business operations.Why debtors control should always stay on debtor's control?Suppose the obligation of the debtor is to do something and he fails to do it or performs it in contravention of the agreement, what are the the remedies available to the creditor?
- For a liability to be recognised within the financial statements, it needs to be reasonably apparent that an obligation to an ____________exists. Select one alternative: legal obligation external party another party counter partyIs there any exception to the rule that the particular motives of the parties in entering into a contract are different from the cause of the contract? If there is, what is it? Give examples.What are the effects on creditors, including secured creditors during voluntary administration? Explain and provide an example
