Vasily pushes for an acquisition anyway. The reason for this acquisition is principal agent problem.
A conflict of interests between a person or group and the agent appointed to act on their behalf is known as the principal-agent dilemma. It is possible for an agent to do actions that are not in the principal's best interests.
The principal-agent problem is as complex as the range of principal and agent responsibilities. It can happen in any circumstance where the primary or owner of an asset transfers direct control of the asset to a third party or agent.
Agency costs are the possibility that the agent will take actions that are not in the principal's best interests. In order to align priorities and solve a principal-agent problem, the rewards system may need to be changed.
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Answer:
b) false
Explanation:
As we know that the Sole proprietorships have unlimited liability while in the partnership, the partners have limited liability.
Moreover, The proprietor is financially liable for all of the company's debts. In a court of law, a judge might require that the proprietor or owner liquidate its personal assets in order to pay the business' debts.
Hence, the given statement is false
The interest amount earned is removed from the accumulated amount of savings because the interest is simple interest.
<h3>What is Interest?</h3>
interest is the percentage amount earned over the savings made and deposited in the account, the interest is a basic market interest rate that is applied to the savings to calculate the amount of interest income for a given period of time.
The savings are deposited and they are applied for the interest rate the interest income is also included in the original savings, then for the next year the interest rate will again be only applied to the original savings amount and not the compounded amount that is the original amount of savings plus the interest earned in the first year.
That is why the interest earned in the first year is deducted from the total savings in the account to calculate the interest income for the second year.
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