The Following Information Relates to SellIT

question 15

Multiple Choice

The following information relates to SellIT:
• 5000 units of stock were sold for $10 per unit
• the cost of that stock to SellIT was $4.50 per unit
• other costs incurred during the period totaled $10 000
• proceeds on sale of an item of plant during the period was $2000
• the carrying amount of the plant at the date of disposal was $500.

SellIT would recognise the following amount as revenue for the period:

• A) $27 500
• B) $50 000
• C) $51 500
• D) $52 000

Understand the implications of corporate restructuring for company liabilities and legal actions against the corporation.

Identify the regulatory and shareholder approval requirements for different types of corporate restructuring.

Know the effects of corporate restructuring on stock value and how appraisal rights work.

Learn about the specific legal protections and strategies corporations can employ against unwanted takeovers.

---

Definitions:

Price Decrease

A reduction in the cost of goods or services compared to previous prices.

Treasury Bonds

Long-term government debt securities with maturity dates typically beyond 10 years, regarded as low-risk investments.

Default Risk

The probability that a borrower will be unable to meet the required payments on their debt obligations.

Maturity Risk

The risk associated with the fixed term of securities; the risk that bond prices will decrease because of rising interest rates as maturity approaches.