All categories

3 years ago

Which of the following assertions is true?

Business

1 answer:

wariber [46]3 years ago

5 0

Answer:

D) Agency costs involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value and costs that are incurred by shareholders to make sure that managers pursue shareholder value.

Explanation:

Due to the fact that most public companies are not managed by owners but by managers, agency cost arises.

Agency cost arises when the manager pursues her own interest to the detriment of the owners.

In order to mitigate against agency costs , owners put certain mechanisms in place to limit these costs. Some of these mechanisms include increased monitoring and employment contracts

I hope my answer helps you

You might be interested in

All financial statements:_________

Anastasy [175]

Answer:

a) help to evaluate what happened in the past.

Explanation:

The financial statement interprets the financial performance, profitability, position of the company. It involves the income statement, balance sheet, cash flow statement, etc through which the business could be analyzed in a better way

Also it helps to analyze and evaluate what is happened in the past

Therefore the option a is correct

5 0

3 years ago

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the fir

Gwar [14]

Answer:

$18.29

Explanation:

Material Conversion

Units transferred to

the next department 7.400 7.400

Ending WIP

Materials 50% 1.900 950

Conversion Cost 35% 1.900 665

Equivalents Units Production 8.350 8.065

Cost of beginning work in process inventory $ 10.600 $ 12.800

Costs added during the period $ 142.100 $ 359.500

TOTAL COST $ 152.700 $ 372.300

Equivalents Units Production 8.350 8.065

Cost per equivalent unit $18,29 $46,16

3 0

3 years ago

A subsidiary can pay only 50% of its profits to its parent company unless the subsidiary's accumulated retained earnings have be

Aleks [24]

Answer:

False

Explanation:

There is no restriction that prohibits the payment of dividends from a subsidiary to a parent company. The parent company has to report the subsidiary's profit as taxable income, so the subsidiary must pay its dividends to the parent company. To avoid multiple layers of taxation, parent companies can use the dividends-received deduction to reduce their taxes on the dividends received. Then the parent company must itself distribute dividends to its shareholders.

7 0

3 years ago

Which of the following is true of water budgets?

zysi [14]

Answer:

B. In the winter, when water use is low, precipitation exceeds evapotranspiration

Explanation:

A water budget can be seen as the relationship between the inflow and outflow of water through a specified region. It gives a general Idea of the relationship between the demand and supply of water in that region.

Evapotransipration is the loss of water from the soil through evaporation from the soil and other surfaces and by transpiration from plants, while precipitation refers to rain, snow, sleet, or hail that falls to the ground.

During winters due to the cold temperatures, the rate of water loss from the soil and from plants is much lower than the amount of precipitation which is on form of snow.

Snow covers most of the soil, freezing the soil water at the surface of the soil, making it difficult for evapotranspiration to occur. In addition to that, most deciduous trees shed their leaves during this period further reducing the total amount of transpiration in that region.

This makes option B correct

3 0

3 years ago

A certificate of deposit often charges a penalty for withdrawing funds before the maturity date. If the penalty involves two mon

jeka57 [31]

Answer:

The penalty will be worth $200.

Explanation:

The certificate of deposit is worth $20,000.

The interest rate on it is 6%.

The penalty on early withdrawal is 2 months of interest.

The annual interest