Identify at least one researchable question for each of the following issues (in questions 612). 6. A

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Question:

Identify at least one researchable question for each of the following issues (in questions 6–12).

6. A cable network has just entered into an agreement granting it the right to show reruns of a hit TV series. In exchange for this right, the network must pay the TV show’s creators a fee each time the show airs.

7. An online travel agency sells a $400 airline ticket to a customer; of this amount, the travel agency must remit $370 to the airline, and the travel agency will retain a $30 commission related to the sale of the ticket.

8. A popular website primarily generates revenue through ad sales. Ad buyers must pay a specified cost per click, and this cost is based on agreed-upon terms between the website and ad buyer. The typical term of an advertising arrangement is approximately 30 days with billing generally occurring after the delivery of the advertisement.

9. Tar, Inc. (i.e., “the original polluter”) has paid $8 million to a waste disposal company to clean a contaminated site, and to assume its environmental liability (currently recorded as an $8 million liability on Tar’s financial statements). State regulators have signed off on the liability transfer and now look to the waste disposal company as the responsible party for the cleanup.

10. Acknowledging publicly that its Pie Division is its most unprofitable business unit, Bakeries, Inc. has announced the sale of the Pie Division’s four baking facilities, along with planned layoffs of Pie Division’s employees. Bakeries, Inc. is hoping to segregate the results of the Pie Division’s operations in its financial statements. (Identify at least two possible research questions.)

11. Your company is planning to issue convertible bonds, also known as hybrid debt, which are bonds that can convert into shares of common stock upon the occurrence of certain triggering events.

12. For the following researchable question, identify two additional questions that might arise as the researcher digs deeper into the research topic. Assume that a company has just sold a portfolio of its accounts receivable, in exchange for cash and certain retained interests in the receivables. The initial question: Can the company record the transfer as a sale?