Question

Companies usually buy_ assets. These include both tangible assets such as - and intangible assets such as To pay for these assets, they raise capital. The decision about how to raise the money is usually termed as decision. Multiple Choice financial, stock, patent.capital budget real, machine, trademarks, financing 0 0 financial, trademarks, stock, investment 0 real, equipment, bond, financing

Answer 1

Q1)

Companies usually buy Real assets. These include both tangible assets such as machine and Intangible assets such as trademarks.To pay for these assets, they raise capital. The decision about how to raise the money is usually termed as Financing decision.

Option b) real, machine, trademarks, financing is correct

Q2)

A corporation is a legal entity that is separate and distinct from its owners.

Corporations enjoy most of the rights and responsibilities that individuals possess: they can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes. Some refer to it as a "legal person."

Therefore, the right option is a)when the management of a business is conducted by individuals otherthan the owners the business could be a corporation.

Q3)

A single payment of $622 at the end of the first year =$622/1.05 = $592.39

$29 in ordinary perpetuity = $29/0.05 = $580

PV($50 a year for 20 years) = $50[(1-(1+0.05)-20)/0.05]

=623.11

Therefore, the right option is c) a payment of $50 a year for 20 years starting at the end of the first year.