Underwriting of Shares Questions and Answers

Underwriting of Shares Question No. 1 (Partial Underwriting) A Company issued 100,000 shares of $100 each. These shares were underwritten as follows: X—-30,000 shares and Y—– 50,000 shares. The public applied for 70,000 shares. Determine the liability of X, Y and the Company. Answer Marked applications are not given in the problem. Therefore, applications be … Read more

Acquisition of a Business

What does the acquisition of a business mean? While dealing with partnership accounts, we have seen that a sole proprietorship or a partnership firm, doing business more or less on the same line, may be converted into a firm in order to get the advantage of securing the economy and to avoid competition. Similarly, a … Read more