Answer:
True
Explanation:
Information asymmetry occurs when one of the two parties in a transaction has more information than the other. This causes the person that has the least information to likely make bad decisions.
In the question, we have an example of information asymmetry: incumbent managers simply have more information about the companies, because they have actually worked in managing them.
Outside managers, while as qualified as incumbent managers, do not have as much information about the companies, because they have not actually worked there.
Answer:
C. Measure of value
Explanation:
Measure of value or unit of account is one of the four main functions of money. Under this function, money makes it possible to compare the values of different goods and services. Producers of goods and service providers apply various techniques to assign a monetary value to their products. Comparison in value, therefore possible as with money as the common denominator.
Because money is divisible in small units, it is possible to attach a monetary value to a good or service regardless of its size or worth.
<span>they significantly increased the breakdown of the: Manorial System.
A lot of Knights that supposed to be exist to preotect the land owned by the nobles in Manorial system left to join crusades expeditions.
This make the Nobles position became really week in society until eventually merchant guilds started to take over their business</span>
Answer:
c. cost approach
Explanation:
The cost approach is a real estate valuation method in which the price estimated regarding the buyer that have to pay for the property and the same is equivalnet to the cost for creating a buidling.
Here the property value should be equivalent to the land cost also add the construction cost and minus the depreciation expense
So as per the given situation, it is the cost approach that determined the market value of the property
Answer: Expense capitalize
Explanation:
The expense capitalize is the term which is used to refers to the capitalizing the given cost of the expenses based on their values for the purpose of evaluating all the expenses in the balance sheet.
The capitalize the expenses provide various types of benefits to the firms for obtaining the various types of updated assets that typically helps in providing the long term duration.
According to the given question, the interest in the given two cases is basically treat by expense capitalize for the purpose of financial reporting.
Therefore, Expense capitalize is the correct answer.
