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mrs_skeptik [129]
3 years ago
8

Which one of the following actions by a financial manager is most apt to create an agency problem? Increasing current profits wh

en doing so lowers the value of the company's equity Refusing to expand the company if doing so will lower the value of the equity Refusing to lower selling prices if doing so will reduce the net profits Agreeing to pay bonuses based on the market value of the company's stock rather than on its level of sales Refusing to borrow money when doing so will create losses for the firm
Business
1 answer:
MrRissso [65]3 years ago
6 0

Answer: Increasing current profits when doing so lowers the value of the company's equity.

Explanation:

The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.

When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.

If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.

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Capital accumulation is the​ _____, including​ _____ capital. (A) development of new​ goods; financial (B) increase in​ firms' p
melamori03 [73]

Answer:

Option "B" and "D" are correct answer

  • Increase in firm's profit; financial
  • growth of capital resources; human

Explanation:

  • Capital accumulation relates to an investment or profit increase in assets and is one of the building blocks of a capitalist economy.
  • The goal is to increase the value of an initial cost, whether it is through appreciation, lease, investment income, or interest, as a return on investment.
  • Profit margin tests a firm's productivity by measuring its net income by overall sales. Organizations may grow their net profit margin by increasing profits, e.g. by providing additional goods or by raising prices.

4 0
4 years ago
Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 6.00% per year. What is
olganol [36]

Answer:

Real rate of return = 0.94%

Explanation:

The relationship between the nominal rates of return, real rate of return and inflation is:

( 1+ nominal rate ) = ( 1+ real rate) *( 1 + inflation)

or, (1.07) = (1 + real rate) * (1.06)

Hence, the real rate of return is = (1.07)/(1.06) = (1 + real rate of return)

1.0094 = 1 + real rate of return

Real rate of return = 0.94%

4 0
3 years ago
Swinging Sammy Skor's batting prowess was simulated to get an estimate of the probability that Sammy will get a hit. Let 1 = HIT
8_murik_8 [283]
I believe it B please correct me if im wrong
7 0
3 years ago
On her first day on the job in the fast food restaurant, Kayla's supervisor spent considerable time with her, explaining procedu
Aleksandr [31]

Answer: Role taking

Explanation:

The leader–member exchange theory simply focuses on the two way relationship that exist between the leaders and the followers.

When a new member joins the organization, it's the responsibility of the leader to assess the talent of the new employee and offer him or her the opportunities to demonstrate their capabilities and explain the functions that the person is expected to perform. This is what Kayla's supervisor is performing.

8 0
3 years ago
. Bill owns "Bill's Home of Blues" a store that specializes in selling CDs and DVDs of blues musicians of the 1960s and 1970s. B
Maurinko [17]

Answer:

B) is a fixed cost

Explanation:

According to my research on the process of loan repayments we can say that the $900 weekly payment is a fixed cost. This is because the $900 payment is the same amount every week and does not change until the initial loan plus the interest is payed in full. This would not be the case if the payment amount is different every week.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
3 years ago
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