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irga5000 [103]
3 years ago
14

The managers at Speed Automobile Inc. want to diversify the business by acquiring a consumer electronics company. This acquisiti

on would mean increased job security, higher compensation, and greater decision-making authority for the managers. The managers correlate this acquisition to greater power for them rather than to the appreciation in shareholder value. In this scenario, this acquisition by Speed Automobile is most likely a result of:
Business
1 answer:
trapecia [35]3 years ago
5 0

Answer:

principal-agent problem

Explanation:

In a corporation, the principal-agent problem refers to conflict of priorities that exist between the shareholders and the management. Management has the duty of increasing the corporation value, and therefore increasing the shareholders' wealth. But sometimes, management makes decisions that benefit them more than the shareholders. This conflict of interest can be really dangerous for a corporation, since managers may safeguard their own personal interests and sacrifice the corporation's future value.

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After graduation, you face a choice. you can work for a multinational consulting firm and earn a starting salary (benefits inclu
Wittaler [7]

Answer: Accounting profit= $44,500

Economic Profit = $4,150

Explanation: <em>Accounting profit</em> are the profit earned by subtracting explicit cost from the total revenue earned.

Accounting profit = Revenue - Explicit cost

<em>Economic profit</em> are profits lefts out after subtracting implicit (opportunity) cost and explicit ( monetary) costs. It is given by

Economic profit = Revenue - Explicit cost - Implicit Cost

In this case, the explicit cost include rental cost, office supplies, office staff and telephone expenses.

While, implicit cost include the 7% interest foregone on the $5000 savings and the salary foregone ($40,000) by choosing to startup a business than take up the job.

3 0
3 years ago
What is the best revision of sentence 6 to maintain a formal style? moreover, students will benefit from having the most current
leva [86]
The best option which contains a sentence with a perfect grammar structure is : M<span>oreover, students will benefit from having the most current information. This sentence in quite concise and includes only formal language. Formal style does not accept shortenings that you can see in the next option (info) and informal vocabulary (kids) that is placed in the third option.</span>
4 0
3 years ago
Read 2 more answers
In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial acco
adell [148]

Answer:

Be tailored to the specific needs of an individual decision maker.

Explanation:

A managerial account report is more likely to be tailored to the specific needs of an individual decision maker. This is usually In comparison with a financial statement prepared in conformity with generally accepted accounting principles,

The managerial account lays its focus on specific needs which the decision maker needs.

It doesn't do any of theses;

Focus upon the operating results of the most recently completed accounting period neither does it View the entire organization as the reporting entity.

7 0
3 years ago
A leftward shift in the supply curve for a good may be caused by any of the following except A. consumer expectation of an incre
nydimaria [60]

Answer: A. consumer expectation of an increase in their future income.

Explanation:

The supply curve is simply a graph that shows the relationship that is between the price of a particular good and the amount of quantity that is supplied.

A leftward shift in the supply curve for a good simply means that less of that good is supplied. All tye options will cause less of the goods to be supplied except consumer expectation of an increase in their future income.

3 0
3 years ago
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What is accountability
Rama09 [41]

Accountability is a promise that a person or a group will be judged on how they perform or behave in relation to anything for which they are accountable.

Though more from the standpoint of oversight, the phrase refers to accountability. For instance, an employee might be in charge of making sure that a response to an RFP (request for proposals) complies with all the standards. Consequences may or may not occur if the work is not completed satisfactorily. Accountability, on the other hand, indicates that the worker is required to successfully complete the task and will need to at least justify their failure.

Learn more about Accountability here

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5 0
2 years ago
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