When a hired manager does not have the same interests as the owners of the business, economists call it a principal-agent problem.
A principal-agent problem occurs when there is a conflict of interest between the owner(s) of the asset and the hired representative. This happens when a degree of control and decision-making is delegated to the hired individual. The risk that they will make decisions that are contrary to the owner’s best interest is called agency costs and is carried by the owner. It is the owners' responsibility to provide incentives for the hired manager or individual to act in favor of their same interests.
While the options are incorrect because:
- Conquest and control: A hired manager is only delegated partial control and limited decision-making. Which can affect the interests of the owner but has neither the ownership of the asset nor carries the liability of loss and profit.
- A financial problem: Financial problems refer to monetary problems including, excess debt, lack of savings, struggles with daily living, and bad spending habits.
- A financial intermediary problems: A financial intermediary is a third party hired to manage and conduct financial transactions between two parties and are legally obliged to follow certain policies and guidelines.
You can learn more about principle-agent problem at
brainly.com/question/14800593
#SPJ4
4. A sole trader is someone who runs a business on their own, but they may employ people. A partnership has 2-20 people who run a business
Hope this helps
The portfolio that contains the common return on a mixture of market index with the same beta is often known as protection market line.
<h3>Is safety market line the same as CAPM?</h3>
The safety market line (SML) is a visual representation of the capital asset pricing model (CAPM). SML is a theoretical representation of the predicted returns of belongings primarily based on systematic, non-diversifiable risk.
<h3>How do you study a security market line?</h3>
The two-dimensional correlation between anticipated return and beta can be calculated via the CAPM formula and expressed graphically via a safety market line, or SML. Any protection plotted above the SML is interpreted as undervalued. A safety under the line is overvalued.
Learn more about security market line here:
<h3>
brainly.com/question/15877803</h3><h3 /><h3>#SPJ4</h3>
Answer: Which is not a way you can check your account balance? Contact the FDIC/NCUA. What is a transaction that has not been processed yet by a financial insitution? A pending transaction.
Explanation:
Answer:
57,049 cups
Explanation:
The formula to compute the break-even point in units is shown below:
Break-even point in units = (Fixed cost) ÷ (contribution per cup)
where,
Fixed cost = Number of cups × fixed cost per unit
= 145,000 cups × $0.48
= $69,600
Now the contribution per unit equals to
= Selling price per cup - variable cost per cup
= $1.29 - $0.07
= $1.22
Now put these values to the above formula
So, the value would equal to
= $69,600 ÷ $1.22
= 57,049 cups
