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1 year ago

When an employer hires an employee to enter into contracts on behalf of the employer, a ______ relationship typically exists.

1 answer:

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When an employer hires an employee to enter into contracts on behalf of the employer, an <u>agency relationship</u> typically exists.

An agency relationship exists between an employer and the employee, when the former authorizes the latter to act on his behalf, including to enter into contracts and agreements.

The employer is called the principal, and the employee is called the agent. These arrangements are made with the consent of both parties, and the principal is bound by what his agent does.

Agency relationships are essential for firms that do business globally. This is because the principal, through the agent, is able to be in more than one place at a time, thereby expanding the scope of their business.

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Why do you think compound interest is described by some as a mathematical explosion?

tekilochka [14]

Explanation:

what is the first tink sol do you with your money ? g i v e TRUE ore false You should save first , give second and sens third false

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2 years ago

Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company grante

vitfil [10]

Answer:

1. $80,000,000

2. (The Journal entries can be found below)

Explanation

1. Fair value per share x shares granted = million fair value of award

=$5×$16,000,000 = $80,000,0000

The total compensation cost pertaining to the restricted shares is $80,000,000

2. Journal entries as at December 31, 2021. ($ in millions)

Dr Compensation expense ($80 million ÷ 2 years) 40

Cr Paid-in capital—restricted stock 40

Journal entries as at December 31, 2022. ($ in millions)

Dr Compensation expense ($80 million ÷ 2 years) 40

Cr Paid-in capital—restricted stock 40

Dr Paid-in capital—restricted stock 80

CrCommon stock (16 million shares x $1 par) 16

Cr Paid-in capital—excess of par (remainder) 64

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3 years ago

The _____________ holds that a rise in price level will make domestic goods relatively more expensive, ____________ exports and

exis [7]

The interest holds that a rise in price level will make domestic goods relatively more expensive, rate exports and effect imports.

<h3>What are domestic goods?</h3>

domestic goods are goods that are being produced locally in a particular country which can as well be exported out.

In this case, The interest holds that a rise in price level will make domestic goods relatively more expensive, rate exports and effect imports.

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2 years ago

In a simple CAPM world which of the following statements is/are correct? I. All investors will choose to hold the market portfol

vagabundo [1.1K]

Answer:

The answer is: All of the options are correct

Explanation:

The Capital Asset Pricing Model (CAPM) states that a stock's rate of return is the sum of the risk free rate plus a risk premium. The advantage of the CAPM model is its simplicity, and that it can be used for every type of stocks.

In a simple CAPM world investors would operate the same way as they do now; They will hold investments portfolios that include risky assets; The investor's risk aversion should determine what stocks make up the portfolio; Risk returns should follow the same pattern; Investor will try to make their portfolios be as efficient and profitable as possible.

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3 years ago

How does the relationship between risk and expected return serve to allocate capital in a market?

Arte-miy333 [17]

The relationship between risk and expected return serves to allocate capital in a market. Investors want to maximize return for a given level of risk, so capital flows to its most efficient use.

There is a positive correlation between the level of risk taken and the level of return expected. The greater the risk, the greater the expected return and the greater the likelihood of suffering a large loss.

The relationship between risk and expected return is called the risk-return relationship. This is a positive relationship because the more risk you take, the higher the required return that most people demand. Risk aversion describes a positive risk-reward ratio.

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2 years ago