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2 years ago

The agency relationship in corporate finance occurs:__________

Business

1 answer:

miskamm [114]2 years ago

3 0

Answer:

when the shareholders hire a manager to run their company.

Explanation:

An agency relationship in corporate finance is a situation whereby a party known as an agent is hired by another party which is the principal, to perform certain functions or services. Based on this question, the share holders are known as the principal while the manager act as the agent. The relationship is formed after the agent has agreed that he or she will represent the principal

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Why does a minimum wage exist?

AleksandrR [38]

Answer:

A minimum wage exists so that when people are looking up their career field they see what they should get paid.

Explanation:

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3 years ago

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<span>DELETE because it makes sense you welcome </span>

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3 years ago

When one party to a transaction has incentives to engage in activities detrimental to the other party, there exists a problem of

Juli2301 [7.4K]

Answer: Moral hazard

Explanation: As per economic principles, if an individual increases the exposure to risk when covered by insurance, moral hazard happens, particularly when an individual takes further risks just because someone carries the burden of all those consequences.

There can be a moral hazard at which one party's policies may modify to the disadvantage of someone else after a business transaction has occurred. Moral hazard may arise through a type of asymmetric information in which the threat-taking group to trade is more aware of its motives than the person bearing the risk's implications.

Thus, from the above we can conclude that the correct option is A .

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3 years ago

Pina Corporation entered into an operating lease agreement to lease equipment from Badger, Inc. on January 1, 2017. The lease ca

posledela

Answer:

= $80,273

Explanation:

Value of the right of use asset = Value of lease liability - cash incentive received + costs incurred for lease

= $82,773 -$ 6,000 + $3,000 + $500

=$80,273

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2 years ago

Atlarge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability to significantly influence the in

dem82 [27]

Answer:

C. $22,672

B. $413,872

Explanation:

a. The computation of Amount realized by Ticker is shown below:-

Unrealized profit = (48,000 - $28,800) × 25% × 30%

= $19,200 × 25% × 30%

= $1,440

Unrealized profit from Additional sales = ($60,000 - $33,600) × 40% × 30%

= $26,400 × 40% × 30%

= $3,168

Ownership Interest = (Earned income × Outstanding percentage) + Unrealized profit - (Investment + Unrealized profit from Additional sales)

= (108,000 × 30%) + $1,440 - ($8,000 + $3,618)

= $32,400 + $1,440 - $11,618

= $22,672

b. The computation of balance in the Investment is given below:-

Balance of investment = Investment + Interest - Dividend

= $402,000 + $22,672 - ($36,000 × 30)

= $402,000 + $22,672 - $10,800

= $413,872

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2 years ago