<span>A nominal interest rate means very low interest rates therefore we can use money for long duration by paying very low interest rate. We can hold this money for land duration. We also invest this money in other investment plan that gives better returns. This nominal interest rate is very helpful for running any business.</span>
Answer:
d. The potential exists for agency conflicts between stockholders and managers.
Explanation:
In a company the shareholders are the owners of the company who own shares and have stake in the company. They employ managers to take care of the daily running of the company.
There is the potential of conflict between the shareholders and the management of the company because shareholders just want to make short term profit, whole the management of the company may want to take initiatives that will lead to future gains.
Management will need to communicate effectively reason for temporary slump in profits, and emphasise future gains the company stands to get.
Answer:
cash flow on total assets ratio = 4.8 %
so correct option is a) 4.8%
Explanation:
given data
net cash flows = $120,000
total cash flows = $500,000
average total assets = $2,500,000
to find out
cash flow on total assets ratio
solution
we get here cash flow on total assets ratio that is equal to
cash flow on total assets ratio = Operating cash flow ÷ Average total assets ..................1
put here value we get
cash flow on total assets ratio = 
cash flow on total assets ratio = 4.8 %
so correct option is a) 4.8%
Answer:
The correct answer is C
Explanation:
Consolidation strategy is the stage or the phase in the company or the industry lifecycle, where the segments or parts in the company or in the industry begin to merge.
Business mostly consolidate in order to gain the larger portion of the market share so as to take the benefit of synergies.
In short, this strategy, states the acquisition and merger of the smaller companies into a much larger for the economic benefit.
So, in this case, the Magnet adopted or followed the strategy of consolidation.
