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What will most likely occur if a company eliminates an unprofitable segment when a portion of fixed costs are unavoidable?
If a company eliminates an unprofitable segment while facing unavoidable fixed costs, it may not see a significant improvement in overall profitability, as those fixed costs remain. The remaining segments will need to absorb the fixed costs, potentially reducing their margins. Additionally, eliminating the segment could lead to a loss of revenue that might have contributed to covering those fixed costs. Ultimately, the decision could have mixed financial outcomes depending on the structure of the business and the nature of the costs involved.
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How is ownership measured in a company?
Officially ownership is represented by who holds the equity of a company. Corporations have shareholders and they are the owners. Whomever holds more shares owns a greater portion of the company.
How are rebates used?
A rebate is a reduction or refund of the cost of a product. Most rebates are "mail-in" where the customer writes to the company and shows proof of payment. the company in turn refunds all or a portion of the cost.
What is different between private company and public company?
Privately-held companies are - privately held, i.e., owned by the company's founders, management or a group of private investors. A public company, on the other hand, is a company that has sold a portion of itself to the public via an initial public offering of some of its stock, meaning shareholders have claim to part of the company's assets and profits.
When are non qualified annuities taxed?
A non qualified annuity is purchased with after tax dollars. The only portion of the annuity that is taxable is the interest portion. This is taxed upon the withdrawal from the annuity at a ration set forth by the company under the guidelines of the IRS.
Is common stock a credit 0r debit balance?
Common stock is a portion of capital of company and capital has a credit balance that's why common stock also has a credit balance and shown under owner's equity portion under liability side of balance sheet
What is the difference between avoidable cost and unavoidable cost?
When considering outsourcing a portion of services provided, avoidable costs are those that would go away if the service was outsourced. Unavoidable costs are those that would remain such as overhead.
If my insurance company deducts my deductible from a homeowners claim do i still pay the deductible?
Yes. The insurance company will pay their portion of the claim which does not include the deductible because that is your portion .
Do stock owners own the company?
Yes. They own a portion of the company. If a company has 1000 shares totally and you have bought 100 of them, then you are a 10% owner of the company
Company would pay interest on what portion of the loan?
disbursed amount
What is corportions?
A corportion is a company structure in British Italy similar to a corporation, but without all the bells and whistles, only a portion, so the name corp-portion or corportion.
What do selling shares give a company?
money. A company sells a portion of ownership in itself (stock) in exchange for capital.
Is a shareholder considered an owner of a company?
Yes, a shareholder is considered an owner of a company because they own a portion of the company's stock, which represents ownership in the business.
Why are dividends important for a business?
Dividends are important because they provide a means to return a portion of a company's annual earnings to the shareholders (owners) of the company.
How is ownership measured in a company?
Officially ownership is represented by who holds the equity of a company. Corporations have shareholders and they are the owners. Whomever holds more shares owns a greater portion of the company.
What is it called when a company is listed on the stock market?
Its called going public. A company declaring shares to the public and getting itself listed in an exchange means the company is a public limited company and everyone who owns a share of that company owns a portion of that company.
What are the dividends?
1. A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
How much ownership of a company does a single share represent?
A single share of a company represents a small portion of ownership in that company. The percentage of ownership depends on the total number of shares outstanding.
