This is an example of Tying rewards and incentives directly to the achievement of strategic and financial targets.
By doing this, general Electric aimed to create an objective measurement for all of its emloyees that motivate them to keep increasing their performance if they hope to stay as an employee in that company. Through this method, Jack Welch managed to increase the company's value for around 4000% during 20 years of his reign.
Answer:
Quantitatively, Harlan Bikes is justified in deciding to close the department, but there are other qualitative factors that need to be considered which may result in the company loosing much more that they can save if the department is closed, such as for example a decrease in employee morale, a negative signalling effect to other stakeholders, a drop in sales in related products etc.
Explanation:
A decrease in employee morale can result especially if workers in other departments are no-longer sure about their future in the company, resulting from fears of their departments being closed. This can negatively affect productivity resulting in lower profits in other department.
A negative signalling effect means that other stakeholders such as investors and creditors may start questioning managements ability to profitably run the business, and the company will be perceived as more risky. Cost of debt and cost of equity capital for example, may go up, due to this higher perceived risk, and which may reduce the number of positive net present value projects that the company can undertake due to an increase in cost of capital.
If the company carries related products in other departments, it may also see a drop in sales in those sales, which will effectively reduced the savings that are estimated to be gained from closing the division.
Answer:
C. Buy Treasury Stock
Explanation:
The Treasury Stock Method of Calculating Diluted Earnings Per Share
This method is usually used by an organisation to determine the number of additional shares it can generate from options as well as outstanding in-the-money warrants. Once these new shares are acquired they are then used to calculate the organisation's diluted EPS
Specifically and in relations to the question, the outstanding warrants and options are used to repurchase stocks which are then converted into treasury stock. Hence, the answer that states that stock options are exercised and that the proceeds were used to buy treasury stock.
I believe that the answer to the question provided above is that charging <span>the new deal was antibusiness and anti–free enterprise was a right thing to do, to regulate the enterprise.</span>
Hope my answer would be a great help for you. If you have more questions feel free to ask here at Brainly.
Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2017, in exchange for $6,059,500 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias’s stockholders’ equity was $2,045,000 including retained earnings of $1,545,000
