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2 years ago

Which terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?

Business

1 answer:

AysviL [449]2 years ago

4 0

Answer: Agency problem

Explanation:

Agency problem is the issue rises when the agents fails to display appropriate interest of principles.This interest conflict usually occurs between the organisation's stakeholder and management.

In this situation,manger is the person who usually acts as the agent for providing best interest to the stakeholder to increase their wealth and benefit.But if failure in this case occurs , then conflict is experienced between both the parties.

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Why is the separating of recordkeeping from the custody of assets a limitation of an internal control system?

yanalaym [24]

The separating of recordkeeping from the custody of assets a limitation of an internal control system because:

In example above, fraud could occur only if the two employees collude (agree to work together to commit fraud)
Employee maintaining accounting records has no incentive to falsify records.
Employee controlling asset will know if another person is maintaining records or not.
The employee who controls/has access to an asset should not maintain that asset's accounting records.

<h3>What is meant by Internal Control?</h3>

Internal controls are the mechanisms, rules, and procedures implemented by a corporation to ensure the integrity of financial and accounting information, promote accountability, and stop fraud.
Internal controls can help improve operational efficiency by improving the accuracy and timeliness of financial reporting, besides complying with laws and regulations and preventing employees from stealing assets or committing fraud.

To learn more about asset's accounting records: brainly.com/question/24012821

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6 0

2 years ago

Ivory is listening to a manager present statistics that they believe supports a new initiative. Which type of critical thinking

ioda

The type of Critical Thinking Questions that Ivory should ask at this point are:

What are the assumptions?
what are the issues and the conclusions?
Are there fallacies in the reasoning?
How authentic is the data presented?

<h3>What are Critical Thinking Questions?</h3>

Critical Thinking Questions are questions that make inquiries into the veracity of a claim.

They help the evaluator to maintain a logical and rational line of thoughts so that they are able to connect clearly the relationship between facts and ideas.

Learn more about Critical Thinking Questions at:
brainly.com/question/6034421

3 0

2 years ago

Shambo Corporation has provided the following contribution format income statement. Assume that the following information is wit

morpeh [17]

Answer:

26.66 or 27%

Explanation:

The computation of the margin of safety percentage is shown below:

Margin of Safety

= 100 - Break Even %

= 100 - 73.33

= 26.66 or 27%

Working Note

Sales (3,000 units) $60,000

Less: Variable expenses -$42,000

Contribution margin -$18,000

CM Ratio (A) 30.00%

Fixed expenses (B) 13,200

Break Even Point C = B ÷ A 44,000

Break Even % of Total Sale 73.33%

5 0

2 years ago

A marine biologist is planning to move from Sydney, Australia to San Francisco. She has $5,000 Australian dollars (AUD) to make

natita [175]

Answer:

Now, if takes 0.765 USD to be equal 1 AUD. when the dollar increases, it will take fewer dollars to equal 1 AUD. for instance, it takes 0.5 dollars per 1 AUD. The conversion will change to:5,000 AUD * (0.5 USD/AUD)

5,000 * 0.5

= $2,500

so, her AUD will be worth more now.

Explanation:

Solution

Given that:

Her present $5,000 AUD is worth $3,825 USD.

Then

5,000 AUD * (0.765 USD/AUD)

5,000 * 0.765

= $3,825

So,

If the USD dollar increases against the AUD, then, the ratio will reduce.

For example, it takes 0.765 USD to be equal 1 AUD. when the dollar increases, it will take fewer dollars to equal 1 AUD. for instance, it takes 0.5 dollars per 1 AUD. The conversion will change to:

5,000 AUD * (0.5 USD/AUD)

5,000 * 0.5

= $2,500

Therefore, her AUD will be worth more now.

6 0

3 years ago

What does limited liability mean?

shutvik [7]

It basically means that, if you are a shareholder of a certain business, you are only a liability up to the extent where your shares hold you to

4 0

3 years ago