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Assignment help 3390

What is the advantage to Brad, Courtney, and John of issuing a note payable instead of issuing common stock? A. The cash received from Courtney”s parents should enable MoviesDoorToDoor.com to generate a higher return on equity than would otherwise be possible. B. MoviesDoorToDoor.com reduces the risk of filing for bankruptcy because it does not have a legal obligation to pay back the cash received from Courtney”s parents. C. Courtney”s parents are legally obligated to voice their opinion regarding all major business decisions under consideration by MoviesDoorToDoor.com. D. MoviesDoorToDoor.com can use the personal assets of Courtney”s parents should financial difficulties arise. 51. When do cash dividends become a legal obligation of a business entity? A. B. C. D. On the date of record.

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