Answer:
The correct answer is E.
None of these answers
Explanation:
According to corporate and business ethics , one cannot make any income for self from business transactions.
A manager is an employee of the company, and according to the agency concept, manager is the agent of the company. He can make investments on the behalf of the company, if authorised to do so, in accordance with his employment contract. The company will be liable to remunerate the manager. It is the manager's fiduciary duty to act in the company's best interests, ahead of its personal interests. This situation is clearly a conflict of interest situation, where he should act in the company's interest, not in his personal interests. All of the options, except for E, will be satisfying his personal interests.
Option D may look ideal but it is also incorrect as the manager is still earning $ 100K. ideally manager should have zero income for investments made on behalf of firm if he goes by ethics.
Therefore none of the answer is correct.
Answer:
Demand decreases.
Explanation:
The demand decreases because the price increase would cause drivers to travel less, meaning that gasoline sales would go down.
Answer:
Learning curve theory states that as the quantity of a product produced increase , the man-hours per unit expended producing the product decrease.
Explanation:
The learning curve states that if a person performs similar task again and again, then after a period of time there will be an improvement in his/her performance.
It is calculated using following formula.
Y = ax^b
.
Y = cumulative average time per unit or batch.
a = time taken to produce initial quantity.
X = the cumulative units of production or, if in batches, the
cumulative number of batches.
b = the learning index or coefficient, which is calculated as:
log learning curve percentage ÷ log 2. So b for an
90 per cent curve would be log 0.9 ÷ log 2 = – 0.152
Answer:
interest rate parity
(0.8/1) * (1.4*3/12)/(1.25*3/12) = 0.8
Hence It is proved that interest rate parity does not hold because the vale of forward contract is $0.79/CD.