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WARRIOR [948]
3 years ago
10

Discuss the corporate control of your business. Explain why your business in Mexico is exposed to agency problems

Business
1 answer:
Wittaler [7]3 years ago
5 0

Answer:

Corporate Control and Agency Problems

For  instance, Mr. Jones has a business in Mexico and hires professional managers, but he cannot be there to control their actions always.  There are lots of agency problems because of the conflict of interests that is prevalent and the inexistence of goal congruence.

His corporate managers are his agents, as the stockholder.  However, most times, these managers do not run the businesses they are entrusted with fiduciary duties in the best interests of  Mr. Jones or the principals who appointed them to the positions.  They carry out their own agendas and try to satisfy their selfish interests.

Explanation:

Is there any wonder Mr. Jones' business in Mexico is exposed to agency problems?  The managers who are your agents will never, at all times, protect your interests in the business.  They try as much as possible to satisfy their own interests.  Where there is no goal congruence, managers will always expose their principals to agency problems.  To curtail these problems, Mr. Jones and the other stockholders must devise means to align the interests of the managers with those of the stockholders.  One of the ways of achieving this is through stock compensation and the limitation of compensation in cash.

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What kind of structures must a cell have that would be analogous to a modern business?
Elanso [62]

Answer:

I might be wrong but I beleive the answer is cytoskeleton

6 0
3 years ago
The 2016 balance sheet of Whole Foods Market reports operating assets of $5,489 million, operating liabilities of $2,066 million
frosja888 [35]

Answer:

Correct option is E.

Explanation:

There is not enough information to calculate the amount.

Net operating asset= Operating Assets  - Operating Liabilities

=$5489 Million - $2066 Million

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Hence Average net operating assets can't be calculated by given information.

8 0
3 years ago
Of the following activities which is MOST likely to be an interaction between the financial manager and the information systems
ryzh [129]

Answer:

The correct answer is the option A: Developing a system to bill customers, pay suppliers and track inventory.

Explanation:

First of all, an<em> information systems manager</em> has the job of creating, developing and monitoring information systems that could possibly help the organization in its entire structure to improve its performance and therefore that manager focuses in the importance of information as an asset and how could it supports the decision making process for the other executives.

Second of all, a <em>financial manager</em> has the responsability to care about the health of the institution regarding subjects involving money and all of the companies assets. That manager must focuses in the organization of the resources that could help the organization to achieve its goal and how to use them in a proper way.

Finally, in the situation where both of those managers interact together, the main purpose will be to develop an information system, created by the information system manager, that could help the organization to gather information regarding the payment to suppliers, the track of inventory and the bill of customers due to the fact that a system with all that information will help the financial manager to take decisions more properly in order to achieve success.

4 0
3 years ago
Suppose you own a stock that you believe will produce a return of 13% in a good economy and 4% in a poor economy. Given the prob
agasfer [191]

Answer:

The correct answer is letter "B": Expected return.

Explanation:

Expected return is the return an investor expects from an investment given the investment's historical return or probable rates of return under different scenarios. To determine expected returns based on historical data, an investor simply calculates an average of the investment's historical return percentages and then, uses that average as the expected return for the next investment period.

In the example, the expected return would be:

<em>Expected return </em><em>= (return in a good economy + return in a poor economy)/2</em>

<em>Expected return </em><em>= (13% + 4%)/2</em>

<em>Expected return </em><em>= </em><em>8,5%</em>

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3 years ago
When describing the opportunity cost of two producers, economists use the term natural advantage. trading advantage. comparative
tia_tia [17]
Im confused on what your asking 
4 0
3 years ago
Read 2 more answers
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