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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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Identify whether a debit or credit results in the indicated change for each of the following accounts.

Maksim231197 [3]

Answer:

a. To increase Land - Debit

b. To decrease Cash - Credit

c. To increase Fees Earned (Revenues) - Credit

d. To increase Office Expense - Debit

e. To decrease Unearned Revenue - Debit

f. To decrease Prepaid Rent - Credit

g. To increase Notes Payable - Credit

h. To decrease Accounts Receivable - Credit

i. To increase Common Stock - Credit

j. To increase Store Equipment - Debit

Explanation:

Debit gives details of spending, sum owed , amount to balance which is usually recorded to the left side of an account entry book while credit gives the details of income, amount earned or made on sale, spending cut and revenue and is usually placed to the right hand column of an account entry.

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3 years ago

When evaluating a Website, which of the following statements might indicate the site is based on the author’s opinion instead of

lidiya [134]

It is from my experience since if it is from his experience then the author could tell us something like it is a beautiful place or it is very warm. based on these statements it is opinions since he doesn't have a fact do back it up. his experience tells us what he thought so it is his opinion

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4 years ago

Read 2 more answers

Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has

xenn [34]

Answer:

Romain Surgical Hospital

The total Surgery Department cost after service department allocations is closest to:

$ 565,970

Explanation:

a) Data and Calculations:

Service Department Operating Department

Information Technology Administration Surgery Recovery

Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360

Computer workstations 43 20 74 64

Employees 39 25 94 47

Information Technology costs allocated based on the Computer workstations $36,294/138 = $263 per workstation

Administration costs allocated based on the number of employees:

$36,282/141 = $257.32

Direct Allocation of Service Departments' Costs:

Service Department Operating Department

Information Technology Administration Surgery Recovery

Departmental costs $ 36,294 $ 36,282 $ 522,320 $ 720,360

Information Techn. (36,294) 0 19,462 16,832

Administration 0 (36,282) 24,188 12,094

Total costs 0 0 $ 565,970 $ 749,286

8 0

3 years ago

Preparing a Schedule of Cash Collections on Accounts Receivable Kailua and Company is a legal services firm. All sales of legal

VMariaS [17]

Answer: $81,060 in August and $80,850 in September

Explanation: Please find attached a table.

August 86,800 17,360 38,500 25,200 81,060

September 91,000 18,200 43,400 19,250 80,850

8 0

4 years ago

The hourglass model for structuring effective business presentations suggests you should:_______.

mrs_skeptik [129]

Answer:

Begin and end your presentation with motivating context

Explanation:

Just as the hourglass is shaped with a large top, narrow middle and a large bottom. Presentations should start on a general and motivational context.

The middle of the presentation should focus on some details and procedures on how to achieve set goals and objectives of the topic. This is where practical steps are given to the audience.

The end of the presentation should again be a motivational context again. The audience is made to see the big picture of the situation.

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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: