Answer:
The correct answer is C,top level managers may pursue their own interests over that of the company.
Explanation:
Company executives tends to pursue personal interests at the expense of the shareholders who are the bona fide owners of the business.
This selfish interest pursuance is playing out because the CEO's remuneration packages cannot be said to be justifiable in that they are not linked to any performance metrics such as the level of profits posted.
The major concern is on the stock compensation and bonuses since the best practice requires that benefits should be linked to the company's underlying performance,that way the company's performance is boosted and would be seen as a way win-win situation for both shareholders and the management team.
Answer: B) The longer the cash cycle, the more likely a company will need external financing.
Explanation:
The cash cycle refers to the amount of time it would take a company to be able to convert the goods that it has in inventory to actual cash. If this cycle is long, then the company will have less cash than it needs because it is not raising cash fast enough.
To be able to fund operations therefore, the company might be forced to seek external financing.
Answer:
They comply with the provisions explanation is set out somewhere in the segment below.
Explanation:
A related sequence of procedures intended to produce an advertisement campaign for a specific outcome of the election.
<u>The forms in which the given objective is achieved would be as described in the following: </u>
- Using the list linked to something like the campaign impact on either the incentive.
- For both the incentive pick the primary source or main idea of the campaign or an advertisement.
Answer:
The break even point in units is 3750 units.
Explanation:
The composite break even point is the break even point in units calculated for a business having more than 1 product. The composite break even point is calculated by dividing the fixed costs by the weighted average contribution per unit.
Break even point in units = Fixed cost / Weighted average contribution per unit
The weighted average contribution per unit can be calculated using the following formula:
Weighted average CM per unit = (Weight of Product X in sales mix * Contribution per unit of Product X) + (Weight of Product Y in sales mix * Contribution per unit of Product Y)
Total units in sales mix = 2 of X + 1 of Y = 3
Contribution margin per unit = Selling price per unit - Variable cost per unit
Weighted average contribution per unit = [ 2/3 * (15 - 2.5) + 1/3 * (25 - 10)]
Weighted average contribution per unit = $13.33333333 per unit
Break even point in units = 50000 / 13.33333333
Break even point in units = 3750 Units
Answer:
d. One defect of the IRR method is that it assumes that the cash flows to be received from a project can be reinvested at the IRR itself, and that assumption is often not valid.
Explanation:
While calculating a project's IRR, that is internal rate of return we calculate the return at which the outflow = inflow. Further it is assumed that the funds will be reinvested at the same rate.
As with change in weights because of amount invested, change in capital structure, the effective rate also changes, and the expected rate of return being IRR is generally not the same.
Accordingly, this is a correct statement that most of the times it is not true that reinvestment will earn the same rate of return as of IRR.