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3 years ago

An agency problem can occur when_____________.

Business

1 answer:

AlladinOne [14]3 years ago

7 0

Answer:

A) the desires and objectives of the owners and agents conflict.

Explanation:

An agency problem occurs when there is conflict of interest in a situation where one part is expected to act in the best interest of the other.

In finance this usually occurs between the management and stockholders, the manager is an agent for the stockholder (principal). The manager is expected to run the business and make profit for the principal and may instead maximise his own wealth.

Agency problem arises when an agent is motivated to act in his own interest and not fully for his principal.

You might be interested in

Product placement (the use of branded products by characters in films and TV shows in return for a fee paid by the brand's owner

Galina-37 [17]

Answer:

d. This is clearly a case of perceptual filters. There are many people in the theater watching a movie. Suppose a James Bond movie, shows James Bond using a Sony mobile hand set.

Explanation:

Audience in the theater, who wants to buy a new handset, will pay attention and notice the fact that James Bond is using a Sony hand set. But audiences, who do not need to buy a hand set will probably not notice the brand or the model. So, those who do not want to buy a new mobile set are using their perceptual filters by not noticing the brand.

7 0

4 years ago

One objective of affirmative action plans is to _____.

jonny [76]

Explanation:

avoid diversity in the makeup of the workforce

7 0

3 years ago

Which formula can you use to extract the month number from the date entered in cell F5 as July 8, 2016?

morpeh [17]

Answer: =MONTH(F5)

Explanation:

The MONTH function in Excel returns the month, a number from 1 (January) to 12 (December).

It’s syntax is;

“=MONTH(serial_number)”

Where serial number refers to the date in question, which could either be a date itself or a cell reference.

The MONTH function is used to extract the month number from a date.

If cell F5 contains “July 8, 2016”, the formula “=MONTH(F5)” inputed in another cell will give the value “7”.

This is because the month July is the 7th month of the year.

5 0

3 years ago

Home Products, Inc., is planning the introduction of a new food dryer. To compete effectively, the dryer would have to be priced

lys-0071 [83]

Answer:

The Target cost per dryer will be $35 per dryer

Explanation:

First, we need to calculate the required return

Required return = Investment x Required rate of return

Where

Investment = $600,000

Required rate of return = 25%

Placing values in the formula

Required return = $600,000 x 25% = $150,000

Now calculate the return per dryer

Return per dryer = Required return / Expected sale = $150,000 / 30,000 = $5 per dryer

Now use following formula to calculate the target cost per dryer

Return Per dryer = Selling price per dryer - Target cost per dryer

$5 per dryer = $40 per dryer - Target cost per dryer

Target cost per dryer = $40 per dryer - $5 per dryer

Target cost per dryer = $35 per dryer

8 0

3 years ago

A perpetuity will pay $300 per year, starting five years after the perpetuity is purchased. is purchased. What is the present va

Maru [420]

Answer:

present value of perpetuity = $29615.93

Explanation:

given data

pay = $300 per year

interest rate = 3%

solution

we get here present value payment after 5 year is

present value = $\frac{future\ value}{1+ discount\ rate }$ ...........1

present value = $\frac{1000}{(1+0.03)^5}$

present value = $862.60

and

now we get present value on purchase date

present value = $\frac{payment}{interest\ rate}$ ......2

present value = $\frac{862.60}{0.03}$

present value = $28753.33

and

present value of perpetuity is

present value of perpetuity = $862.60 + $28753.33

present value of perpetuity = $29615.93

5 0

3 years ago