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Bogdan [553]
2 years ago
15

You are a financial manager in a public corporation. One of your engineers says that they can increase the profit margin on your

flagship product by using a lower quality vendor.​ However, the product is likely to fail more often and will generally not last as long. Will taking your​ engineer's suggestion necessarily make shareholders better​ off? Why or why​ not?
Business
1 answer:
Anni [7]2 years ago
7 0

Answer:

No, the particular suggestion never makes shareholders better off.

Explanation:

No, it isn't necessarily going to make investors better off.

Although we are cutting costs, that could boost earnings in the short term, we will deal with much more expensive permit problems and lost public image with our customers, possibly leading them to purchase from our rivals, that in the longer term would decrease cash flow.

  • Having a commodity less expensive but of lesser quality is not the same as increasing the value of the shares.

therefore, we have to reject this offer.

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The Greek letter epsilon stands for which of the following: profit cost, error elasticity, or

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4 0
1 year ago
The percentage change in the quantity demanded of film divided by the percentage change in the price of cameras indicates:
beks73 [17]
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The price elasticity of demand for film

7 0
3 years ago
Ranger Glass Company manufactures glass for French doors. At the start of May, 2,000 units were in-process. During May, 11,000 u
GuDViN [60]

Answer:

$16.20

Explanation:

Calculation for How much is the cost per equivalent unit for direct materials

Cost per equivalent unit for direct materials=($36,000+$186,000)/[11,000+(3,000*90%)]

Cost per equivalent unit for direct materials=$222,000/(11,000+2,700)

Cost per equivalent unit for direct materials=$222,000/13,700

Cost per equivalent unit for direct materials=$16.20

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7 0
2 years ago
Brian is the 99% shareholder, president, and director of Arapine Corp. He frequently uses the corporation credit card for his pe
Alika [10]

Answer: (C) Brian is liable because the court will pierce the corporate veil.

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The phrase "PIERCING THE CORPORATE VEIL" is used to describe a situation where a Court decides to hold Corporate Shareholders and/or LLC Owners personally liable for the liabilities of a corporation.

When individuals act in a way that does not separate them from the company (dissolving this 'veil'), the Court looks upon this seriously and treats it in kind. Some instances of this happening are, failure to keep business and personal funds separate and diverting business assets for personal use without proper documentation as Brian seems to have done.

For this reason, the Court will very much likely Pierce the veil.

If you need any clarification do react or comment.

6 0
3 years ago
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