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jarptica [38.1K]
3 years ago
10

What is the relationship among agency theory, economic consequences, and signaling?

Business
1 answer:
PIT_PIT [208]3 years ago
6 0

Answer:

In agency theory, the company is a nexus or locus among competing groups. At the cost of shareholders money, management try to maximize their its compensations. In economic consequences, the some gorups can benefit at the expense of others. This is due to the accounting standard. Economic consequences tend to complement agency theory. In signaling, it is primarily towards one group. It is neither be in agreement with agency theory or economic consequences.

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Describe how the concept of beta impacts financial decision making
Dima020 [189]

The concept of beta impacts financial decision making by providing information volatility or systematic risk of a security.

The information that provided by the concept of beta would take form in a comparison between your chosen securities with other securities that exist in the market. For investors who prefer low risk but small and steady return, they can use the concept of beta to find out the securities with low level of volatility.

6 0
4 years ago
The advanced industrial nations of the West committed themselves after World War II to removing barriers to the free flow of goo
sergeinik [125]

Answer:

The correct answer is: General Agreement on Tariffs and Trade (GATT).

Explanation:

The General Agreement on Tariffs and Trade (<em>GATT</em>) is the first multinational trade treaty signed by twenty-three (23) countries in October 1947 after the events of World War II (<em>WWII</em>) agreeing in eliminating tariffs and increase international trade. After several adjustments, it was replaced by the World Trade Organization (<em>WTO</em>) in 1955 to be assigned as the only organization handling international trade worldwide.

8 0
4 years ago
Nike has several models of athletic shoes, and most have high functionality. However, several models are also sleek looking and
alexandr402 [8]

Answer: aesthetic appeal

Explanation:

Aesthetic appeal is a principle of style or taste that is adopted by a particular group, person, or culture. Something that is considered to have an aesthetical appeal means that the particular thing is beautiful, and pleasing to the senses, especially the senses of hearing and sight.

Aesthetic appeal is used by several companies and brands as a way to make their products look nice and beautiful to their customers or prospective customers. This is used by Nike who uses several model to advertise its products.

8 0
4 years ago
You are trying to explain to your friends the importance of using real GDP to measure economic health over time, but some of the
VLD [36.1K]

Answer: $10,869.57

Explanation:

The Nominal GDP is the total amount of final goods and services produced in a country within a period, usually a year. It is calculated using the current year's prices.

Real GDP adjusts the Nominal GDP for price changes by using the price level of a certain base year.

The GDP Deflator is the price level of the current year and can be useful in calculating how much the prices have risen or fallen from the prices of the base year.

The formula is;

(Nominal GDP/Real GDP)*100 = GDP Deflator

Making Real GDP the subject;

Real GDP = (Nominal GDP/GDP Deflator)*100

= (10,000/ 92) * 100

= $10,869.57

7 0
3 years ago
Describe the nature of the following major categories of risk (1) Financial Risks (2) Political Risks (3) Environmental Risks​
Reptile [31]

Answer:

Market riskinvolves the risk of changing conditions in the specific marketplace in which a company competes for business. One example of market risk is the increasing tendency of consumers to shop online. This aspect of market risk has presented significant challenges to traditional retail businesses.

Explanation:

hope this helps

7 0
2 years ago
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