Match (by letter) the following terms with their definitions. Each letter is used only once.

$$\begin{matrix} \text{Terms}\\ \hline \text{\_\_\_\_\_ 1. Publicly held corporation.}\\ \text{\_\_\_\_\_ 2. Organization chart.}\\ \text{\_\_\_\_\_ 3. Articles of incorporation.}\\ \text{\_\_\_\_\_ 4. Limited liability.}\\ \text{\_\_\_\_\_ 5. Initial public offering. }\\ \text{\_\_\_\_\_ 6. Double taxation.}\\ \text{\_\_\_\_\_ 7. S corporation.}\\ \text{\_\_\_\_\_ 8. Limited liability company.}\\ \end{matrix}$$

$$\begin{matrix} \text{Definitions}\\ \hline \text{a. Shareholders can lose no more than the amount they invest in the company.}\\ \text{b. Corporate earnings are taxed twice-at the corporate level and individual shareholder level.}\\ \text{c. Like an S corporation, but there are no limitations on the number of owners as in an S corporation.}\\ \text{d. Traces the line of authority within the corporation.}\\ \text{e. Allows for legal treatment as a corporation, but tax treatment as a partnership.}\\ \text{f. Has stock traded on a stock exchange such as the New York Stock Exchange (NYSE).}\\ \text{g. The first time a corporation issues stock to the public.}\\ \text{h. Describes (a) the nature of the firm's business activities, (b) the shares to be issued, and (c) the composition of the initial board of directors.}\\ \end{matrix}$$

DAE Parts Shop began business on January 1, 2019. The corporate charter authorized issuance of 20,000 shares of $5 par value common stock and 5,000 shares of$10 par value, 5% cumulative preferred stock. DAE issued 12,000 shares of common stock at $25 per share on January 2, 2019. What effect does the entry to record the issuance of stock have on total stockholders’ equity?

a. increase of$340,000

b. increase of $300,000

c. increase of$150,000

d. increase of $120,000

On January 1, 2017, Henderson Corporation redeemed $500,000 of bonds at 99. At the time of redemption, the unamortized premium was$15,000. Prepare the corporation’s journal entry to record the reacquisition of the bonds.

The CEO of the Consolidated Hands of Help, a nonprofit New York Corporation, was shown to be using corporate funds to maintain several limos and various houses for himself around the country. He responded that he needed these to enable him to better recruit donors. The board of directors agreed with his position. A shareholder brought suit claiming that more than 12,000 homeless people could be helped for what was being paid for the luxury items. The suit sought to recover the expenditures from the CEO and the board members. Will it be successful? Why or why not?

Consider the growth of the following virus. A new virus has been created and is distributed to 100 computers in a company via a corporate E-mail. From these workstations the virus continues to spread. Let t=0 be the time of the first 100 infections, and at t=17 minutes the population of infected computers grows to 200. Assume the anti-virus companies are not able to identify the virus or slow its progress for 24 hours, allowing the virus to grow exponentially.

What will the population of the infected computers be after 1 hour?

The Dow Jones Industrial Average (DJIA) is a commonly used index of the overall strength of the U.S. stock market. In 2013 the mean daily change in the DJIA for the 252 days that the stock markets were open was 13.59 points with a standard deviation of 94.05 points. The standardized score for May 1, 2013, was z = -1.62. Find the change in the DJIA for that date.

The attending physician in an emergency room treats an unconscious patient suspected of a drug overdose. The physician does not know the initial concentration $A_{0}$ of the drug in the bloodstream at the time of injection. However, the physician knows that after 3 hr, the drug concentration in the blood is $0.69 \mathrm{\mu g} / \mathrm{dL}$ and after 4 hr, the concentration is $0.655 \mu \mathrm{g} / \mathrm{dL}$. The model $A(t)=A_{0} e^{-kt}$ represents the drug concentration A(t) (in $\mu \mathrm{g} / \mathrm{dL}$) in the bloodstream t hours after injection. The value of k is a constant related to the rate at which the drug is removed by the body. a. Substitute 0.69 for A(t) and 3 for t in the model and write the resulting equation. b. Substitute 0.655 for A(t) and 4 for t in the model and write the resulting equation. c. Use the system of equations from parts (a) and (b) to solve for k. Round to 3 decimal places. d. Use the system of equations from parts (a) and (b) to approximate the initial concentration $A_{0}$ (in $\mu \mathrm{g} / \mathrm{d} \mathrm{L}$) at the time of injection. Round to 2 decimal places. e. Determine the concentration of the drug after 12 hr. Round to 2 decimal places.

A certain community is composed of m families,

$$n_i$$

of which have i children,

$$\sum _ { i = 1 } ^ { r } n _ { i } = m$$

. If one of the families is randomly chosen, let X denote the number of children in that family. If one of the

$$\sum _ { i = 1 } ^ { r } i n _ { i }$$

children is randomly chosen, let Y denote the total number of children in the family of that child. Show that

$$E [ Y ] \geq E [ X ]$$

.

After your discussion with Jason, he asks you whether he should consider buying a corporate bond. Explain to him how bond investing works and the difference between the types of corporate bonds. What type of corporate bond would you recommend? Why?

Explain the corporate income tax filing requirements by state.

An investor is in a $30\%$ combined federal plus state tax bracket. If corporate bonds offer $9\%$ yields, what must municipals offer for the investor to prefer them to corporate bonds?

Klon Corporation owns 70 percent of Brant Company's stock and 60 percent of Torkel Company's stock. During 20X8, Klon sold inventory purchased in 20X7 for $100,000 to Brant for$150,000. Brant then sold the inventory at its cost of $150,000 to Torkel. Prior to December 31, 20X8, Torkel sold$90,000 of inventory to a non-affiliate for $120,000 and held$60,000 in inventory at December 31, 20X8.

Required

Give the journal entries recorded by Klon, Brant, and Torkel during 20X8 relating to the inter-corporate sale and resale of inventory.

A study of the pay of corporate CEOs (chief executive officers) examined the cash compensation, adjusted for inflation, of the CEOs of 104 corporations over the period 1977 to 1988 . Among the data are the average annual pay increases for each of the 104 CEOs. The mean percent increase in pay was 6.9%. The data showed great variation, with a standard deviation of 17.4%. The distribution was strongly skewed to the right.

What are the degrees of freedom? When the exact degrees of freedom do not appear in Table C, use the next lower degrees of freedom in the table.

Describe how corporate cultures differ among businesses.