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3 years ago

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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On January 1, 2013, Nichols Corporation granted 10,000 options to key executives. Each option allows the executive to purchase o

evablogger [386]

Solution:

Dec 31 2013

Compensation Expenses $200,000

Paid in Capital- Stock Options $200,000

*To record compensation expense for 2013

Computation-Compensation Expense= 400,000/2= $200,000

Dec 31 2014

Compensation Expenses $200,000

Paid in Capital- Stock Options $200,000

*To record compensation expense for 2013

Computation- Compensation Expense= 400,000/2= $200,000

Dec 31 2015

Cash $240,000

Paid in Capital- Stock Options $320,000

Common Stock $40,000

Paid in capital – in excess of par common stocks $520,000

*To record stock option for 5 years and market price $30 with a balance record in the PIC in excess of common stock, 8,000 option exercised out of 10,000

Computation-

PIC- stock options- 400,000 X 80%= $320,000

Common stock = 8,000 X 5 per share= $40,000

80%= amount of stock options redeemed.

8,000/10,000= 80%

Dec 31, 2017

PIC- stock options $80,000

PIC- Expired Stock Options $80,000

*To record paid in capital- stock option for 2017 which is $80,000

Computation= 400,000 X 20%= $80,000

20% = amount of stocks that were not redeemed.

4 0

4 years ago

The impact of Inequality on businesses

ivanzaharov [21]

Answer: Plainly put, extreme income inequality, such as the kind found in Sub-Saharan Africa and South Asia, cause economic inefficiency. The relatively wealthy tend to save a much higher proportion of their income than the poor. In order to grow economically, a society must have robust rates of consumption. However, if most of the wealth of a country is owned by a very small percentage of its population, that wealth is saved, not spent. These savings are then invested by individuals and financial institutions.

Explanation:

3 0

3 years ago

If Frica Morrison a machine operator at Stanley Foundry, makes $513.66 a week and has 33 in FIT withheld, how many allowances ha

exis [7]

Using the Single's Person Weekly payroll distribution , the number of allowances claimed by Frica Morrison will be 3.

Given that :

Weekly pay = $513.66
Federal income tax withheld = 33

From the payroll table, Frica's weekly pay falls inbetween $510 - $520 ; checking along the row, we can see from the table(attached) that Federal income tax withheld of $33 falls under the 3 allowances claimed.

This means that for Frica to have $33 withheld from his weekly pay of $513.66, then he must have claimed 3 allowances.

Therefore, the Number of allowances claimed by Frica Morrison is 3.

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