Answer:
As we know the internal controls are not effective after a passage of time because there are familiarity threats which might result in the unethical behavioral implications. So to prevent or detect the management unethical behavior, we can do the following things:
Segregation of Duties
Checking the effectiveness of the internal control after every year or semi year.
Using only company bank account for all the payments and receipt.
Redesigning policies of the organization to ensure effective working of the internal controls.
Bank reconciliation at the month end
Answer:
Optimal package size = 4 units
Optimal package price = $20
Explanation:
P = 8 - 1.5Q and C(Q) = 2.0Q, MC = 2
To obtain optimal package size, we put
Price is equal to the marginal cost, P = MC
8 - 1.5Q = 2
1.5Q = 6
Q = 6 ÷ 1.5
= 4
Therefore,
Optimal package size = 4 units
Hence,
Optimal package price:
= 0.5[8 - 2] × 4 + 2 × 4
= 12 + 8
= $20
Answer:
B. A firm goes heavily into debt in order to obtain funds to purchase the shares of the public.
Explanation:
A leverage buyout refers to when any company purchases any other company by using entirely debt and secure that debt with the assets of the same company they are purchasing.
Hope this helps,
Thank You.
Answer:
option (c) $875 per year
Explanation:
Given;
Average cost of collision claims for careful drivers = $500 per year
Average cost of collision claims for for poor drivers = $3000 per year
Poor drivers known by the company = 15%
thus,
Careful drivers = (100% - 15%) = 85%
Therefore,
Insurance company's breakeven price for the collision insurance
= (Poor drivers known × Average cost of collision for poor drivers ) +( Careful drivers × Average cost of collision claims for careful drivers)
= 0.15 × $3000 + 0.85 × $500
= $450 + $425
= $875 per year
Hence, the correct answer is option (c) $875 per year
Answer:
1. Pam's production strategy should be:
C). She should have one centrally located facility to achieve economies of scale.
2. Her employees should have this attitude toward risk:
B). Risk averse
3. Her compensation system should have the following attributes:
A). High pay differentials between superiors and subordinates
4. Pam should emphasize rewards for employees who come up with ideas for __________.
B). cutting costs
Explanation:
Since "Pam had already identified cost leadership strategy as her preferred strategy, her efforts should be focused on achieving this cost leadership by ensuring that her organization comes up with cost reduction ideas. Instead of having many decentralized facilities, she should have a centrally located facility. This will ensure economies of large scale production which results in reduced cost. Finally, her employees cannot afford to be risk takers. They should be risk averse in order to save costs.
