Answer: The presence of asymmetric information
Explanation: In simple words, asymmetric information refers to the situation when one party to a contract have extra information regarding a subject than the other party of the contract.
Asymmetric information creates the potential of misconduct from the leading party as they can easily cheat the other party by concealing that important information.
In the given case, Mr. Smith was aware that his laptop is not working properly but still he sold its to a customer who was not aware of it. Thus, we can conclude that the correct option is C.
Answer:
overall strategic goals and approval of major decisions.
Explanation:
A board of directors are people that are selected to make decisions that are beneficial to shareholders and to ensure that the management of the organisation acts in the best interest of shareholders.
Directors asses the performance of the management and make major decisions such as acquisitions, issuing of new shares, company liquidation, and dividend declaration.
So Arielle will be involved in approval of major decisions and attainment of business goals as a member of the board of directors.
Answer:
D) The Agency Problem
Explanation:
The agency problem refers to a conflict of interests between the principal and his/her agent. Agents have a fiduciary duty to act on the best interest of their principal, but sometimes agents place their own personal interest before the interests of their principal.
in this case, the brokers should act on behalf of their clients to make them earn the largest possible profits, but instead they focus on convincing them about transactions that increased the broker's profit and not the clients'.
"The answer is $106".
After tax cost of debt 6%
Dep per year 1600
Tax sav from dep 640
cost of owning 0 1
interest -480
tax saving 192
maintence -240
maintenece saving 96
Depn tax saving 640
loan repay
net cash cost 208
PV cost of owning (6%) -3474
cost of leasing
lease payment -2100
Tax savings from lease 840
net cash cost -1260
PV cost lease 6% -3368
PV cost own - Pv cost lease 106