Answer:
C. Separating Management from Ownership
Explanation:
What is Agency
The agency refers to contractural, quasi-contractual and non-contractual fiduciary relationships which represents two to three parties. The first is a person called the agent, the second is the principal and the final is a third party. Agency authorizes an agent to act on behalf of the principal and create binding relatinships with a third party.
Agency Conflict
Agency conflict represents a conflict of interest which is unavoidable in an agency relationship where one party is to act in the best interest of the other party. Specifically, in the business or corporate settings, the agency conflict arises when there is a conflict of interest between an organisation's management and the owners of the organisation.
The challenge is that management who is the agent is expected at all times to make decisions that will constantly maximize the wealth of the owners and at times, these decisions would conflict with management's ability to maximize its own wealth
Therefore, once the management of an organisation is separated from ownership especially in a Management/ shareholders relationship, an agency conflict could arise.
Lawful, because you have the freedom of speech in the U.S.
Answer:
As natural resources are used, their cost is allocated to an expense through a process known as depletion
Explanation:
For natural resources, this process is called depletion, and for intangible assets it is called amortization.
Answer:
The answer is c. Equipment: 87,200; Gain/(loss): (15,500).
Explanation:
Since the exchange has commercial substance,
- Fair value of the equipment is equal to: Fair value of the land - Cash consideration receipt = 89,900 - 2,700 = $87,200.
- The disposal of land in the Balance sheet following the exchange needs to account for the differences between Book value of land and Fair value of land. Since Fair value is now smaller than Book Value, a Loss has to be recognized at the amount calculated as (Fair value - Book value) = (89,900 - 105,400) = $(15,500).
Thus, the answer is c. $87,200 $(15,500).
Answer:
$89.59
Explanation:
After tax dividend = Dividend * (1-Tax)
After tax dividend = $5.70 * (1-20%)
After tax dividend = $5.70 * 0.8
After tax dividend = $4.56
Ex-Dividend price = Share price - After tax dividend
Ex-Dividend price = $94.15 - $4.56
Ex-Dividend price = $89.59
