The correct answer is: [C]: "coinsurance" .
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Answer:
The main conflict that results between planning and control use of budgets is that managers might place their own personal interests before the interests of the company. This might result in budgets that are easily achievable (resulting in bonuses) or shifting income from one period to another in order to achieve certain budgets that will result in bonuses.
I will use a real life example that happened to me to explain this. I worked as a B2B sales representative for a large corporation (we were only 2 B2B salespeople + 1 manager) and when sales were slowing down, upper management would set up bonuses for achieving certain sales goals. The problem was that intentionally certain large sales that required management's approval were delayed and total sales would fall. Then suddenly the bonus show sup and all the large sales were approved and in two weeks the sales goals were achieved. Since B2B sales are not about selling to a lot of customers, but instead selling to the right customers a lot of products, a couple of delayed big sales made a huge difference and a 1% bonus meant changing your old car for a new one.
Answer:
C: A road map.
Explanation:
Business plans are mapped out just like road map. Pinball machines and dreams are not mapped out and wish lists are just collections of things that you want while a business plan is a plan of action.
Hope this helps! :)
Answer:
EPS of Plan I = $3.19
EPS of Plan II = $2.82
Explanation:
Under Plan I:
Plan I's Earning per share (EPS) = EBIT ÷ Number of shares = $575,000 ÷ 180,000 = $3.19
Under Plan II:
Interest = $2,600,000 × 8% = $208,000
Earning after Interest = EBIT - Interest = $575,000 - $208,000 = $367,000
Plan II's EPS = $367,000 ÷ 130,000 = $2.82
Answer:
rights offer.
Explanation:
.
rights offer in equity can be regarded as invitation given to shareholders that are still existing in the firm so that they can purchase new shares, which is additional shares in the firm at a specific price which is usually at a particular time usually like 16 to 30 days. It should be noted that An equity issue sold to the firm's existing stockholders is called a rights offer
