Answer: conflicts that arise in corporations should be addressed in the legal realm(A)
Explanation:
The principal-agent problem is an important part of the agency theory, the principal-agent problem views the firm as a connection of legal contracts.
In this perspective, corporations are seen merely as set of legal contracts that exists between the different parties. The conflicts that may take place are to be addressed in the legal realm.
Answer:
D. economists
Explanation:
Economists -
It refers to the person practicing in the field of economics , is refers to as an economists .
The person is responsible to deal with the concepts of economics , develop , study and apply the classical theories of economics .
The major importance of economist is to make optimal decisions using their complete knowledge of economics .
Hence , from the given information of the question,
The correct option is D. economists .
Answer:
optimal capital structure
Explanation:
optimal capital structure can be regarded as a combination of
of debt and equity financing which brings about maximization of amarket value in a firm. It should be noted that optimal capital structure is the combination of debt financing and equity financing that maximizes a firm's value.
Answer:
1. False
The higher the figure, the higher the risk. Kindly note that loans are usually insured against default. The higher the amount insured, the higher the premium payable as insurance on such amounts.
2. False
It does not make for good internal control to have one person regardless of their position to have the final say on loans of great magnitude such as $5 Million. This can quickly degenerate into a situation where the officer involved is tempted to abuse that power. It makes for good corporate governance and risk management to ensure that the board is responsible for loans of such magnitude.
3. True
If a bank lost $100 in a thousand places, from loan default, that translates to a loss of $100,000. This relatively is large however it is small and will have less impact that a loss of a million dollars in 3 places. That's $ 3,000,000.
As already indicated, it makes for good loan disbursement governance, to ensure that there is at least two persons involved in the risk acceptance criteria (RAC) evaluation and loan disbursement process.
4. False
Separation of duties is the foundation of good internal control. It allows for greater objectivity. It is also key to carefully select signatories to loan disbursements. They have to be people of impeccable character and the company must exercise proper risk management to ensure that every protocol such as opportunity that may create the impulse or inclination to breach policy is removed completely.
Cheers!
a. Debt to equity ratio = Total debt / total equity
Total debt (other than current) = 240 + 150= 390
Total equity = 270
Debt to equity = 390/270 = 1.44
b. Long term debt = 240
Equity (long term) =270
Long term capital = 240 + 270 = 510
Long term debt to long term capital = 240/510 = 0.4706 = 47.06%
c. Working capital = current assets - current liabilities = 180-100 = $80
d. Current ratio = Current assets/ current liabilities = 180/100 = 1.8
