Answer:
C. Ignoring shareholders' rights
Explanation:
Corporate governance refers to the way corporate companies are controlled and directed. The board of directors provides corporate governance in a company. Good corporate governance establishes a framework that protects shareholders' rights in the company.
Some of the shareholders' rights include
1. Right to vote
2. Right to transfer ownership
3. Right to dividends
4. Right to inspect corporate documents
The board of directors must ensure fair treatment of all shareholders, including the minority. The board has to put in place mechanisms that address shareholders' concerns and offers redress when their rights are violated.
State Capitalism or a Centrally Planned Economy
Answer:
4 years
Explanation:
The computation of the payback period is shown below:
Payback period is
= Cost of a Machine ÷ Annual cash flow
where,
Cost of a machine = $24,000
And, the annual cash flow is
= Net Income + Depreciation expense
= $2,000 + $4,000
= $6,000
Now placing these values to the above formula
So, the payback period is
= $24,000 ÷ $6,000
= 4 years
Answer:
c) $5 million
Explanation:
The computation of expected net profit is shown below:-
For computing the net profit first we need to compute the profit which is shown below:-
Profit = $50 million - $10 million
= $40 million
Expect net profit = Probability of success × Profit + Probability of unsuccessful × Loss
= $40 × 0.3 + (-$10 × 0.7)
= $5 million
Therefore for computing the expected net profit we simply applied the above formula.