Underwriting of Shares: Questions and Answers

Underwriting of Shares Question 1: Partial Underwriting A company issued 100,000 shares valued at $100 per share. The shares were underwritten as follows: X: 30,000 shares Y: 50,000 shares The public applied for 70,000 shares. Required: Determine the liability of X, Y, and the company. Answer Marked applications are not given in the problem. Therefore, … Read more

Acquisition of a Business

What Does the Acquisition of a Business Mean? When dealing with partnership accounts, a sole proprietorship or partnership firm may be converted into a firm to derive advantages from improving efficiency and avoiding competition. Similarly, a sole trader or a firm can sell their business to a company (or convert it into a company) to … Read more