What is the difference between operating and non-operating assets? How do we det
ID: 2775777 • Letter: W
Question
What is the difference between operating and non-operating assets? How do we determine the value of a corporation (you may use the formula)? What do we mean by 'value-based management?" Name three things managements might do that would harm a firm s intrinsic value What are the four dates associated with a declared dividend. Please define the term " cash dividend." When dealing with dividend policy, what is the clientele effect? What is the difference between a stock dividend and a stock split? Why might increasing the debt in a firm's capital structure decrease the stock prie Why might issuing more stock signal problems at a firm? Why would a firm consider keep a reserve borrowing capacity? What impact might the threat of bankruptcy have on a firm? What are the twin goals of inventor.. management? What is the cash conversion cycle? What is an 'aging schedule," and what is its importance? What is a line of credit?Explanation / Answer
Answer - To the first question among several question:
1. Operating asset - All the asset held and used by a company for the purpose of generating revenue for its primary bussiness activity is called operating asset.
Non -Operating asset = The assets held by a company which is not an operating asset. These are the assets which are not related to the company's primary revenue making activity.