Answer:
A bond portfolio and a stock portfolio both provided an unrealized pretax return of 8% to a taxable investor. If the stocks paid no dividends, we know that the ________.
The after-tax return of the stock portfolio was higher than the after-tax return of the bond portfolio.
Explanation:
The returns from the bond portfolio are taxed at the corporate rate while returns from stock investments are taxed at a lower rate. It is well-known that the risks from stock are higher than the risks from bonds. As a result, the stock investments always attract higher returns and less tax, as the investor can postpone the tax for a longer term. Again, stock investments can be for the long-term unlike bonds that have defined periods.
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Answer:
1. None of the above
2. All of the above
Explanation:
According to the path-goal theory of leadership, the level of involvement a manager utilizes should (1) be the same for all employees in the department, (2) be either low or high management involvement regardless of the circumstances, and (3) not be influenced by subordinates' expectations. Which statements are correct?
<u>NONE OF THE ABOVE</u>
<u>The Path-Goal theory of leadership stipulates that managers should adapt a leadership style that is employee oriented for the purpose of organizational goal achievement.
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This is an ability issue. When a manager's performance deteriorates because manager's ability has deteriorated. The steps to be taken will be in the order below:
(1) Determine if the resources are adequate,
(2) retrain the individual, and
(3) redesign the job.
<u>All of the above steps are correct in that order</u>
The manager can exercise the power of <span>distributive justice.
The manager may give fair increase toward his/ her employees. There will be no basis for the salary increase since all employees will be given the same amount based on the budget set by the company.
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