Answer:
(a) 1,370,000 shares
(b) 42.19%
Explanation:
Given that,
Shares in a restaurant chain venture = 1,000,000 shares
Price of each share = $1.00
(a) To raise the additional $1,370,000:
Shares will you need to sell:
= Additional amount ÷ Price of each share
= $1,370,000 ÷ $1.00
= 1,370,000 shares
(b) No. of Shares After investment:
= Shares need to sell + Shares in a restaurant chain venture
= 1,370,000 + 1,000,000
= 2,370,000 shares
Therefore, the fraction of the firm will you own after the VC investment:
= (Shares in a restaurant chain venture ÷ No. of Shares After investment) × 100
= (1,000,000 ÷ 2,370,000) × 100
= 0.4219 × 100
= 42.19%
Answer: A. Raul could gain access to cheaper raw materials in a foreign country, thus lowering the cost of his input factors.
Explanation:
Being able to produce goods at a lower cost is a good thing for a business because it means that the business can be able to sell at a lower price and therefore get more customers and increase overall profitability.
If Raul could access materials from a foreign company at a cheaper rate, this would be advantageous because his company can produce at a lower price and increase profitability.
Answer:
The answer is "provides a good basis for crafting strategy".
Explanation:
The SWOT analysis creates the foundation for something like a plan that also builds mostly on advantages of the business, tries to acquire the maximum opportunities for the industry, which defends it against threats to its well-being.
This strategic thinking uses to support an individual in identifying strengths, weaknesses, opportunities, and threats associated with both the competition of enterprises or programs.
She does not have an excessive debt because of her debt-to-income ratio lower than 42 percent. 42% is a limit of good average debt to income ratio and Sabina's debt to income ratio has not yet exceeded that limit. The debt to income ratio can be calculated by<span> dividing her total debt by her total income which results in 37.5% (($300+$450)/$2000 = 37.5%).</span>
Answer:
The answer is below
Explanation:
Merger is a business term that defines the major mean of concentrating businesses. It can be in two different forms, which can either be through the arrangement of a new company or through the through the unification of one or more firms into another firm.
Acquisition however is a business term that describes the purchases of a company's most or all shares, in order gain control that company, buy another company (buyer).
On the other hand, An international joint venture often referred to as IJV is a business term that describes the formation of partnership of companies based in two or more countries, without taking over the other company outright.
Hence, the formation process of a merger, acquisition and international joint venture involves the following:
1. Planning: this stage involves the signing of the letter of intent, advisor appointment, creating and documenting the timetable, transaction method and expert report
2. Resolution: this stage is also vital which involves meetings of Board of Director, extraordinary shareholder, identification of opposition party and go ahead from the antitrust authority.
3. Implementation: this is a stage involving the enrolment of the merger deed in the Company Register.
