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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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Shiffon Electronics manufactures music player. Its costing system uses two cost categories, direct materials and conversion cost
sattari [20]

Answer:

$932 per unit

Explanation:

The computation of direct materials cost per equivalent unit is shown below:-

Work in process ending 100% complete in material = 840 + 290

= 1,130

Total cost = Direct material + Direct materials costs added during March

= $346,000 + $707,500

= $1,053,500

Material Equivalent unit cost = Total cost ÷ Units to account for

= $1,053,500 ÷ 1,130

= $932 per unit

7 0
3 years ago
The Risk Premium is:
8_murik_8 [283]

Answer:

The correct answer is letter "A": The difference between the expected YTM and the YTM of the comparable risk-free bond .

Explanation:

Risk Premium is a return that exceeds the risk-free rate of return that the investment is expected to yield. The risk premium for an asset takes the form of compensation for investors who tolerate the additional risk of an investment compared to the risk-free asset. In fact, investors expect to receive risk premiums because of the risk they are engaged in with certain investment instruments.

7 0
3 years ago
Privett Company Accounts payable $33,264 Accounts receivable 67,719 Accrued liabilities 6,039 Cash 20,980 Intangible assets 39,9
xz_007 [3.2K]

The total amount of quick assets is equal to $119,232. therefore, Option B is the correct statement.

<h3>What are Quick Assets?</h3>

Quick assets encompass cash available or current assets like accounts receivable that may be transformed to cash with minimum or no discounting.

Companies have a tendency to use the short assets to cover short-time period liabilities as they arrive up, so speedy conversion into cash (excessive liquidity) is critical.

Inventories and prepaid expenses aren't quick assets due to the fact they may be hard to transform into cash, and deep discounts are sometimes needed to do so.

The amount of quick assets is equal to Accounts receivable plus Cash plus Marketable securities.

Quick assets = $67,719 + $20,980 + $30,533

Quick assets = $119,232

Hence, the total amount of quick assets is equal to $119,232. Option B is the correct statement.

learn more about quick assets:

brainly.com/question/11209470

#SPJ1

5 0
2 years ago
The three areas in which Americans spent most of their money are
algol13
B clothing, entertainment, and health care
4 0
3 years ago
Oak Tree Farms has common stock outstanding at a price of $13 a share. The total market value of the equity is $435,000. How man
vlada-n [284]

Answer:

13,384.62 shares

Explanation:

Current number of shares = $435,000 / $13

Current number of shares = 33461.53846154

Current number of shares = 33,461.54 shares

Stocks outstanding after the reverse stock split = (33,461.54 shares / 5)*2 = 13384.616 = 13,384.62 shares.

So, 13,384.62 shares of stock will be outstanding if the firm does a reverse stock split of 2-for-5.

3 0
3 years ago
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