Answer:
C.principal-agent problems.
Explanation:
The acquisition of Movo Automobile is a typical example of AGENCY COST. Under the Agency cost theory, managers are agents of shareholders who represents principal in the principal - agent problem.
Agency cost is a situation where agents become selfish and pursue strategies and policies that will promote the self interest of agents and cause dissatisfaction to principals.
The variable cost is calculated as -
Sales - Variable cost = Contribution Margin
Given, Contribution Margin = 25 %
Variable cost = 1 - Contribution Margin = 1 - 25 % = 75 %
25 % of Sales = Contribution Margin = $ 400,000
Sales = $ 400,000 ÷ 25 %
Sales = $ 1,600,000
Variable costs = 75% of Sales = 75 % × $ 1,600,000 = $ 1,200,000
Answer:
The individual's pay relative to company's average pay for that position.
Explanation: Compa-ratio is a term used by Recruitment managers in organisations to determine what a new recruit is likely going to be paid.
This ratio compares the person's position to those of others with an industry and know the average payment to offer the person. For example,a person with a Compa-ratio of 0.5 means the people is earning 50% less the average salary for his or her position.
Answer:
A. The world's largest discount store Wal-Mart seeks vendors to supply products made exclusively for its stores.
Explanation:
Taking into consideration the <u>bargaining power of a buye</u>r in the Porter's Five Forces model, here it is evident that Wal-Mart is the only example of a strong, omnipresent buyer that can surely dictate the terms of the offer. Every vendor would want to sell their produce to Wal-Mart, due to their wide customer base and presence of numerous stores.
