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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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What other inspiring realizations helped Andrew Feld come up with the idea for his startup? List and rank them in order accordin
soldier1979 [14.2K]

The other inspiring realizations that helped Andrew Feld to come up with the idea for his startup, Fresh Patch, were as follows:

  • <u>Idea:</u> His pet gave him some idea that he could build a patch bathroom to enable his dog to ease whenever nature comes calling.  When he tried it out with the dog and saw the success, he engaged his need for income to start marketing the product to others.

  • <u>Necessity:</u>  Since he was unemployed with a pregnant wife, he realized that he could do something with his time.  This made him to try the bathroom for dogs idea that his pet needed.  He needed some income to cater for his family.

  • <u>A Big Vision:</u> The other realization is that the first year could be tough and will-breaking.  Then, he also realized that a big vision could be realized if one works hard at it.

Thus, these realizations greatly helped Andrew Feld for his startup, Fresh Patch.

Read more about inspiring ideas for business startups at brainly.com/question/11671311

6 0
3 years ago
Use the graph for a competitive market ti answer the question below
Svetlanka [38]

Answer:

$3.25

Explanation:

The new price for cigarettes will be the intersection point between the demand curves and the new supply curve.

Assuming S1 is the old supply curve without taxes and the new supply curve is S2 with taxes. The new price is the intersection of S2 and the demand curve, which is at $3.25.

3 0
3 years ago
Discuss the value of technology in business.
Anna35 [415]

Answer:

The vaule of technology in business is very important like the most important of the business because it help keeps tracks of things,  save database, and it help the business grow.

7 0
3 years ago
The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 56% in month following
DaniilM [7]

Answer:

D. $155,600

Explanation:

The calculations of the budgeted cash collections are shown below:

= June sales × sale month collection percentage + May sales × following month collection percentage  + April sales × second following month collection percentage

= $150,000 × 40% + $160,000 × 56%  + $150,000 × 4%

= $60,000 + $89,600 + $6,000

= $155,600

Simply we multiplied the sales with the collection criteria

5 0
4 years ago
The chart lists three different sets of career qualifications in the Marketing, Sales, and Service career cluster.
KengaRu [80]

Answer:

The qualification that would best help Payal in getting a job in marketing manager is creativity and skills for analyzing. Option A is correct.

Marketing managers analyze industry trends and demand for products and services seeking to develop a strategy to market the product or service. Furthermore, they tend to help sales engineers, financial staff, and advertising companies to ensure they have a successful strategy to implement.

Explanation:

6 0
4 years ago
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