Answer:
The correct answer is letter "D": The firm must be subsidized or it will go bankrupt.
Explanation:
A subsidy is a benefit given to an individual, business or institution, typically by the government. Subsidies are given to promote a social good or economic policy. The government usually provides subsidies in the form of cash or tax breaks, low-rate loans, and certain types of rebates.
In the example, as the commission sets the price of the monopoly products below the average total cost, it will be translated in losses. Then, a subsidy will be necessary to be provided otherwise the company will file for bankruptcy.
The one that is not true of Credit scores is :
A. only the Credit Bureaus truly know Credit scores are calculated.
They indeed have several benchmark that could be used to calculate it, but with enough information, everyone can predict the score
Answer:
Increasing current profits when doing so lowers the value of the firm's equity.
Explanation:
Agency problem is the likelihood that managers may place personal goals ahead of corporate goals. A characteristic feature of corporate enterprises is the separation between ownership and management. Thus, with the objective of survival, management would aim at satisfying instead of maximizing shareholder´s wealth.
Three generic agency problems arise in business firms:
-The conflict between the firm´s owners and its hired managers.
-The conflict between controlling and minority shareholders.
-The conflict between shareholders and non shareholders constituencies.
Answer:
Implementation
Explanation:
Organizations choose to implement new new system while old ones are still running, this is to upgrade their firms platforms for a better work environments.
Organizations tends to implement new information system, which are a major corporate asset, with respect both to the benefits they provide and to their high costa. Therefore, organizations have plan for the long term when acquiring information systems and services that will support business initiatives.