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3 years ago

A large corporation suffers from the principal-agent problem when its:

Business

2 answers:

bija089 [108]3 years ago

8 0

Answer:

The correct answer is letter "B": board of directors ties the salaries of management exclusively to the profits of the firm.

Explanation:

Principal-agent problems arise when a principal hires an agent to perform duties that conflict with the agent's best interest. The problem typically occurs when the principal provides incentives to act in the principal's interest but not the agent, generating a conflictive agenda.

In that case, if the boards of directors tie the salaries of management according to the profits of the firm, they will be acting on their own interest but not in the interest of the managers, making option "B" to represent a typical principal-agent problem.

amm18123 years ago

7 0

<span>The correct answer is d. management does not own a large share of firm stock and pursues its own interests rather than those of shareholders.When management pursues its own interests, there is a conflict with the interest of the shareholders who hired the management in the first place.</span>

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Roman owns shares in a company called Copnay Telecom Inc.The company's financial performance has been declining over the past fe

docker41 [41]

Answer: D. Transferability of investor ownership.

Explanation:

From the question, we are informed that Roman owns shares in a company called Copnay Telecom Inc. and that the company's financial performance has been declining over the past few months, and the value of its stock has been decreasing.

We are further told that Roman wants to proactively cut his losses and therefore sells his shares and that Jeremy, a trading enthusiast, buys shares in Copnay Telecom because he believes that the share prices cannot go anywhere but up.

The characteristics of a public stock company that this scenario best exemplify is transferability of investor ownership. This was illustrated when Roman transferred his ownership to Jeremy.

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3 years ago

A contractor purchased a dozer for $180,000 and anticipates using it for nine years. The salvage value of the dozer at the end o

ArbitrLikvidat [17]

The salvage value of the dozer at the end of year 1 is $163,000

The salvage value of the dozer at the end of year 2 is $146,000

The salvage value of the dozer at the end of year 3 is $129,000

The salvage value of the dozer at the end of year 4 is $112,000

The salvage value of the dozer at the end of year 5 is 95,000

The salvage value of the dozer at the end of year 6 is 78,000

The salvage value of the dozer at the end of year 7 is 61,000

The salvage value of the dozer at the end of year 8 is $44,000

The salvage value of the dozer at the end of year 9 is $27,000.

<h3>What is the book value of the dozer?</h3>

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

(180,000 - $27,000) / 9 = $17,000

Book value = cost of the asset - depreciation expense

Year 1 = $180,000 - $17,000 = $163,000
Year 2 = $163,000 - $17,000 = $146,000
Year 3 = $146,000 - $17,000 = $129,000
Year 4 = $129,000 - $17,000 = $112,000
Year 5 = $112,000 - $17,000 = 95,000
Year 6 = 95,000 - $17,000 = $78,000
Year 7 = $78,000 - $17,000 = $61,000
Year 8 = $61,000 - $17,000 = $44,000
Year 9 = $44,000- $17,000 = $27,000

To learn more about straight line depreciation, please check: brainly.com/question/6982430

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2 years ago

Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 10% annual cou

viva [34]

Answer:

YTM is 7.46%

Explanation:

Given:

Face value of bond (FV) = $1,000

Years to maturity (nper) = 10

Coupon rate = 10%

Coupon payment (pmt) = $100 (0.1×1,000)

Price of bond (PV) = $1,175

If the bonds are held till maturity, then yield to maturity is calculated using excel function =Rate(nper,pmt,PV,FV)

Yield of bond if held till maturity is 7.46%

4 0

3 years ago

Harrangue Company's standard variable overhead rate is $6 per direct labor hour, and each unit requires 2 standard direct labor

Lorico [155]

Answer:

Total variable overhead variance is express = 2,200

Explanation:

given data

overhead rate = $6 per direct labor hour

actual direct labor hours = 6,000

actual variable overhead costs = $37,000

product manufactured = 2,900 units

to find out

total variable overhead variance

solution

we find here standard variable overhead that is

standard variable overhead = 2900 unit × $6 × 2 DL hours

standard variable overhead = $34,800

and

Total variable overhead variance is express as

Total variable overhead variance is express = actual variable overhead - standard variable overhead

Total variable overhead variance is express = 37,000 - 34,800

Total variable overhead variance is express = 2,200

7 0

3 years ago

Explain what test marketing is and its purpose?

prisoha [69]

Test marketing is a marketing method that aims to explore consumer response to a product or marketing campaign by making it available on a limited basis before a wider release. Consumers exposed to the product or campaign may or may not be aware that they are part of a test group.

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3 years ago

A large corporation suffers from the​ principal-agent problem when​ its:

A large corporation suffers from the principal-agent problem when its: