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xeze [42]
3 years ago
15

The following statement was made by the vice president of finance of The Electric Company: "The managers of a company should use

the same information as the shareholders of the firm. When managers use the same information in guiding their internal operations as shareholders use in evaluating their investments, the managers will be aligned with the stockholder's profit objectives."
Please respond to the vice president's statement....
Business
1 answer:
RideAnS [48]3 years ago
8 0

Answer:

Check the following explanation.

Explanation:

The goals of managers and shareholders are not always aligned. Agency theory suggests  this misalignment creates the need for costly monitoring through compensation contracts.

To align the goals of the two parties,compensation contracts should be designed to motivate the executive to make decisions that will not only increase his or her wealth, but will also increase shareholder wealth. Steps taken to increase shareholder wealth should be reflected in improved firm performance.Including both components in the contracts helps ensure the decisions of the executive are linked to various time horizons.

Shortterm components motivate the executive to make decisions that have an immediate affect on the firm. Long-term components are necessary to lengthen the decision horizon of the executive and enhance the likelihood of continued improvement in firm value. The long-term incentives in these  contracts can be based on improved shareholder wealth as well as improved firm performance.

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Which of the following is a characteristic associated with warehouse showrooms?
bekas [8.4K]

Answer: E. Vertical merchandise displays are a characteristic associated with warehouse showrooms.

Explanation: A warehouse showroom is a way for a business to display all of their items for consumers to look at and purchase. A warehouse showroom allows for vertical merchandise displays to hold the furniture so that consumers can walk down each isle and look up at the various items. This method gives a warehouse more room to store and expand their supply.

3 0
2 years ago
The _[blank]_ and _[blank]_ work to create spaces that are better for the environment as well as healthier for people.
Reil [10]

The <u>USGBC </u>and <u>LEED</u> work to create spaces that are better for the environment as well as healthier for people.

Explanation:

<u>USGBC-United States Green Building Council</u>

<u>LEED-Leadership in Energy and Environmental Design</u>

<u>USGBC and LEED both are developed by the U.S. Green Building Council to provide green building designs to the building owners and operators with the intention to create spaces which are both better and healthier for the People </u>

<u />

5 0
3 years ago
A total materials variance is analyzed in terms of quantity and quality variances. tight and loose variances. price and quantity
madreJ [45]

Answer:

price and quantity variances.

Explanation:

In Financial accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods. Manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.

Total direct materials variance gives the difference between the budgeted cost and actual cost of a unit of goods produced.

Generally, a total materials variance is analyzed in terms of price and quantity variances used by a manufacturer in the manufacturing of a particular product.

7 0
3 years ago
On March 1, Lincoln sold merchandise on account to Pina Colada Company for $29,400, terms 1/10, net 45. On March 6, Pina Colada
dolphi86 [110]

Answer:

The Journal entries with their narration is shown below:-

Explanation:

The Journal entry is shown below:-

1. Account receivable Dr,       $29,400

      To Sales revenue                       $29,400

(Being Sales revenue is recorded)

2. Sales return and allowance Dr,  $2,200

       To Account receivable                    $2,200

(Being Sales return is recorded)

3. Cash Dr,                                   $26,928

($29,400 - $2,200) × 99%

Sales discount Dr,                        $272

         To Account receivable                 $27,200

($29,400 - $2,200)

(Being cash is recorded)

7 0
3 years ago
A specific present value of an ordinary annuity factor for a given number of periods and a specific discount rate is equal to th
tekilochka [14]

Answer:

True

Explanation:

This is true because if we add all the discounts factor of a particular rate 10% (suppose) for 10 years (suppose). Then the sum will be equal to the annuity factor at 10 years time. This is what the statement is saying above so it is 110% true.

4 0
3 years ago
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