Why Are the Options for Raising Capital in a Small

question 100

Essay

Why are the options for raising capital in a small business limited?

Understand the concepts and accounting treatments for investments in available-for-sale securities.

Recognize the reporting requirements for investments under the equity method.

Distinguish between different types of securities (trading, available-for-sale, held-to-maturity) and their accounting implications.

Calculate and report unrealized gains and losses on investments.

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Definitions:

Radio Frequency Identification (RFID)

A technology using electromagnetic fields to automatically identify and track tags attached to objects, for purposes like inventory management.

Satellite Radio

A broadcasting service that transmits signals via satellites, offering a wide range of channels and content to subscribers, typically without commercial interruptions.

Real GDP

the measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the actual value of goods and services produced.

Intangibles

Non-physical assets that cannot be seen, touched, or physically measured, such as patents, trademarks, and goodwill.