Answer:
The correct answer is letter "A": the principal wants the agent to act on her own behalf.
Explanation:
The principal-agent problem arises when a <em>principal </em>(stakeholder) hires an <em>agent </em>(manager) to act on his or her behalf but the instructions given by the principal generate a conflict of interest for the agent. Usually, agents have their own points of view on how to handle businesses based on their operations. However, principals may request agents to drive the company towards a different destiny securing the principals' interest.
Answer: will increase if the quantity effect outweighs the price effect
Explanation:
A monopolist is an individual or a firm that controls all the market for a certain good or service in the market. A monopolist has so much power and usually doesn't improve their product as there are no alternatives.
An increase in output by monopolist will increase if the quantity effect outweighs the price effect.
Functional is the resum<span>é which tends to be used to cover employment gaps.</span>
Answer:
The average rate of return for this investment is 21%
Explanation:
Average rate of return : The average rate of return shows the ratio between average net income and average initial investment.
Mathematically,
Average rate of return = Average Net income ÷ Average Initial Investment
where Average Net income = Total years of net income ÷ Number of years
= ($100,000 + $60,000 + $30,000 + $10,000 + $10,000) ÷ 5
= $42,000
And, Average Initial Investment = Initial Investment ÷ 2
= $400,000 ÷ 2
= $200,000
Now, average rate of return = $42,000 ÷ $200,000
= 21%
Thus, the average rate of return for this investment is 21%
