Answer:
the maximum loan could bank made as the direct result of the deposit is $1,800
Explanation:
The computation of the maximum loan could bank made as the direct result of the deposit is given below:
= Deposit amount × (1 - required reserve ratio)
= $2,000 × (1 - 0.10)
= $2,000 × 0.90
= $1,800
hence, the maximum loan could bank made as the direct result of the deposit is $1,800
Answer:
I got a warning for sponsoring myself
Explanation:
We have to note an important point here is that, Smith has plan to sell fraudulent identification card through Jones and he has done only Oral agreement.
An oral agreement does not have a proof. Any oral agreement cannot be taken as a proof legally. There must be a proper written agreement required to prove the relationship. There are certain standard too in written agreement.
For Example, agreement written on a normal white paper cannot be accepted. The agreement should be legally signed according the bond paper provided and authorized by the Government.
Considering all the above discussion, Jones stands right.
Answer:
Group of choices:
A. There is an ethical dilemma when the CEO of a firm has incentives that are opposite to those of the shareholders.
B. There is a legal issue when the CEO of a firm has incentives that are opposite to those of the shareholders.
C. In this case, you (as the CEO) have an incentive to potentially overpay for another company (which would be damaging to your shareholders) because the value of the combined company will improve.
D. In this case, you (as the CEO) have an incentive to potentially overpay for another company (which would be damaging to your shareholders) because your pay and prestige will improve.
The correct answer is A. There is an ethical dilemma when the CEO of a firm has incentives that are opposite to those of the shareholders.
D. In this case, you (as the CEO) have an incentive to potentially overpay for another company (which would be damaging to your shareholders) because your pay and prestige will improve.
Explanation:
The agency conflict arises when there is a gap between the owners of a company and the management of the management, since it determines that the interests of the shareholders and that of the managers are different. In the case that arises, the CEO evidently becomes a top-notch executive of the combined company, and will have some additional benefits to those that the shareholders may have (mainly return on their investments). At this point an ethical dilemma arises, since the interests of a person cannot overlap with those of a particular organization, and in the event of a purchase being made from the company, it must be ensured that the levels of profitability of the shareholders will increase over time.
