Please help me to solve this.

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

MrRissso [65]

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.

6 0

3 years ago

You make $10.25 per hour. You have 7.5% of your total pay taken out of your check for your 401K retirement plan. How much will b

Lera25 [3.4K]

The amount that will be taken off the pay check for the 401k retirements plan given all the criteria indicated above is $38.82 (Option D)

<h3>What is the computation justifying the above?</h3>

Given:

Pay Per Hour: $10.25

Bonus: $15.375‬ for every hour worked over forty hours.

Total Hour worked: 47 Hours

Percentage deductible: 7.5%

Total Pay thus =

(40 *10.25) + (7 *15.375)

= $517.625

Total 401 K deduction thus, =

7.5% * 517.625

401K Deduction total = $38.82

Learn more about 401k retirements plan:
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Full Question:

You make $10.25 per hour. You have 71/2% of your total pay taken out of your check for your 401K retirement plan. How much will be taken out for your 401K if you work 47 hours this week? You get paid time-and-a-half for all hours over 40.

Select one:

A. $36.13

B. $69.02

C. $54.20

D. $38.82

E. $14.35

3 0

2 years ago

A company maintains its records using cash-basis accounting. During the year, the company received cash from customers, $32,000,

Virty [35]

Answer:

net income cash-basis 8,000

income accrual-basis 7,900

Explanation:

cash revenues 32,000

salaries expense <u> (24,000) </u>

net income cash-basis 8,000

<u>sales for the period:</u>

beginning AR + sales - collected = ending AR

3,000 + sales - 32,000 = 5,500

sales = 34,500

<u>salaries expense:</u>

beginning salaries payables + salaries - paid = ending salaries payable

3,100 + salaries - 24,000 = 5,700

salaries 26,600

revenues 34,500

salaries <u> (26,600) </u>

income accrual-basis 7,900

3 0

3 years ago

Read 2 more answers

A writer, an illustrator, a publisher and an agent would form a ______. a. functional team b. cross-functional team c. managemen

tresset_1 [31]

A Cross-functional team will be formed when a writer, an illustrator, a publisher and an agent work together.

<h3>What is a Cross-functional team?</h3>

This means the groups of people from various departments in an organization that work together to achieve a common goal.

Hence, when writer, an illustrator, a publisher and an agent work together, this is known as a Cross-functional team.

Therefore, the Option B is correct.

Read more about Cross functional team

<em>brainly.com/question/7628770</em>

6 0

2 years ago

Alfred owned a term life insurance policy at the time he was diagnosed with a terminal illness. After paying $18,300 in premiums

iVinArrow [24]

Answer:

$0

Explanation:

Alfred paid in premiums = $18,300

company paid Alfred = $125,000

Alfred died after 18 months, then,

Company collected the face amount of the policy = $150,000

Sale of policy = [ company compensation - premium paid]

= $125,000 - $18,300

= $106,700

In this situation, Alfred receives the submission price from the insurance company consequential in profit.

There is no gain in the income of the insurance policy that is purchased by the Alfred for the long term.

That's why he is not required to include the amount of sale of policy i.e. $106,700.

Hence, Alfred required to include in his gross income will be zero ($0).

3 0

3 years ago