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1 year ago

Why would the threat of a takeover motivate a manager to act in stockholders' interest?

1 answer:

3 0

Running the firm well and acting in the stockholders' interest makes the firm a less attractive takeover target, to begin with.

<h3>Who are Stockholders?</h3>

A shareholder of a corporation is an individual or legal entity that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation.
Shareholders may be referred to as members of a corporation.
As noted above, a shareholder is an entity that owns one or more shares in a company's stock or mutual fund.
Being a shareholder (or a stockholder as they're also often called) comes with certain rights and responsibilities.

<h3>Which of the following mechanisms is used to motivate managers to act in the interests of shareholders? </h3>

The threat of a takeover

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In gathering audit evidence, the accessibility of information may be a factor thereby influencing which judgment trigger

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The answer is availability

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2 years ago

Internal users of financial information: Multiple Choice Are not directly involved in operating a company. Are those individuals

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Internal users of financial information Are those individuals involved in managing and operating the company.

Answer: Option (B) is correct.

Explanation:

Internal users are people inside the organization. Internal users of financial information are those who are directly involved in managing and operating the organization. They make use of the information to improve the efficiency and effectiveness of an organization.

Internal users consist of all managers like purchase managers, human resource managers, marketing managers, service managers, etc. it consists of employees and the owner of a concern. Internal users take various important decisions based on financial information.

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3 years ago

You plan to borrow $ 4 comma 000 from a bank. In exchange for $ 4 comma 000 today, you promise to pay $ 4 comma 160 in one year

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Answer:

Please check the attached image for the diagram

Explanation:

I would be borrowing $4000 from the bank. I would be $4,000 richer and the bank would have $4000 less.

In one year, I would be paying the bank $4160. So I would have $4160 less and the bank would be $4160 richer.

A negative sign indicates cash outflow and a positive sign indicates a cash inflow.

I hope my answer helps you.

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2 years ago

An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the

german

Answer:

79.5%.

Explanation:

Rate of return = $\frac{final value - initial value}{initial value}$ x 100

The cost of the acre = $12700.

Total property taxes paid for 7 years = $175 x 7

= $1225

Net value of cost = $12700 + $1225

= $13925

Net value of the land when sold = $25000

∴ Rate of return = $\frac{25000 - 13925}{13925}$ x 100

= 0.7953 x 100

= 79.53%

The rate of return of the acre of land is 79.5%.

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2 years ago

Meaning of accounting

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Answer:

<em>Accounting is the process of recording financial transactions pertaining to a business.</em>

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2 years ago