Answer:
The correct answer is letter "A": results in termination of the agent.
Explanation:
Principal-agent relationships are based on a fiduciary duty or, in other words, trust. Principal-agent problems typically arise because principals tend to delegate agents the execution of activities that benefit the principals but not the entity the agent represents. Thus, <em>if the trust between them is broken, principals, as owners of the entity, terminate the agent's contract.</em>
Answer:
The explanation of that situation is below.
Explanation:
To begin with, the most important factor to have in mind in the situation explained above is the fact that we are talking about a "luxury good" and therefore that when it comes to this type of goods is better when the majority of the people do not possess or at least they must represent the fact that they are exclusive for only some part of the population. That is why that those goods use the strategy of increase always the price because that will means that they are not affordable for the majority of the society but only for a few and that will give to the owner of the good a sense of uniqueness and with that it also comes the sense of superiority. That is why that when it comes to this type of good the analysis change and it collides with the other theory of utility maximation.
Answer:
The equipment's net book value on 12/31/2015 is $ 135000.
Explanation:
Net book value of the equipment on 12/31/2015 is given by:
Net book value = cost of the equipment - depreciation expense recognized until 12/31/2015
= $ 350000 - $ 215000
= $ 135000
Therefore, the equipment's net book value on 12/31/2015 is $ 135000.
