All categories

3 years ago

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.

You might be interested in

In a portfolio of two different investments, the overall riskiness of the portfolio, at least in theory, could be less than the

umka21 [38]

Answer:

a.True

Explanation:

The objecting of creating a portfolio is to diversify the investment as the proverb says, "do not put all the eggs in the same basket."

When a portfolio is created, rather than putting all the money in a single stock, stocks of different companies or industries can be purchased wherein the chances of earning a higher return increase and at the same time, the risk is spread over several securities.

It means if one stock incurs a loss it can be offset by profit from another stock which reduces the risk an investor is exposed to.

Thus, the given statement is true.

8 0

3 years ago

Identify each of the following features as applying more to job order operations, process operations or both job order and proce

Fynjy0 [20]

Answer:

Identification of Features Applying More to Job Order Operations, Process Operations, or Both:

Features

1. Cost object is a process. Process Operations

2. Measures unit costs only at period-end. Process Operations

3. Uses indirect costs. Both

4. Transfers costs between Work in

Process Inventory accounts. Process Operations

5. Uses only one Work in Process account. Job Operations

6. Uses materials, labor, and overhead costs. Both

Explanation:

The main difference between the two operations is the manner costs are accumulated. Job operations accumulate costs for different jobs that are not similar. Process operations accumulate costs to show the process a product passes through. The product of a process operation is not unique like the product of a job operation.

6 0

3 years ago

3. Wholesalers and retailers are commonly referred to as

lesya [120]

Answer:

Explanation:

3. Trade Business ... including any and all business that buy from others companies to sell to the public.

4. Extraction business ... as they extract materials from the earth so that manufacturers can create valuable products for customers.

5. nonprofit corporation ... these corporations are legal entities which do not operate as a business and usually make all of their money through donations and grants to use for the benefit of the public, but can also sell goods and services for money.

6. franchise. ... there are many examples of franchises such as McDonalds, Target, Walmart etc. All of which sell the rights to individuals to operate under the franchises name.

7. retailer ... in other words these are the final stores where customers ultimately purchase the product. This can either be a brick and mortar store or an online shop.

3 0

3 years ago

when an inventor gets a patent for his work,it means the goverment will buy a specific amount of the invention

zaharov [31]

I'm guessing this is True or False
If so, the answer is False.

5 0

3 years ago

Taylor, Inc. had accounts receivable of $310,000 and an allowance for doubtful accounts of $19,500 just before writing off as wo

eimsori [14]

Answer:

Net realizable value before write off and after write off remains the same. since the write off is recorded as a debit to uncollectible account and credit to accounts receivables account. The net realizable value is $ 290,500.

Explanation:

Net Realizable value before write off =

Accounts Receivable - Allowance for doubtful accounts

$ 310,000 - $ 19,500 = $ 290,500

The recording for the write off is

Allowance for doubtful accounts Debit $ 1,300

Accounts receivables Credit $ 1,300

Balances after write off are

Accounts Receivable $ 310,000 - $ 1,300 = $ 308,700

Allowance for doubtful accounts $ 19.500- $ 1,300 = <u> $ 18,200</u>

Net realizable value after write off is $ 290,500

There is no change in the net realizable value of receivables

7 0

3 years ago