Answer:
Please see below.
Explanation:
a.
• Reasonable compensation package. Every stockholders would usually want a good return on their investments. One of the techniques that can be used by them is to offer good and reasonable compensation packages to the company's highly performing executives and managers. The aim is to spur them to act in the best interest of the stockholders and not themselves. This will also translate to better performance of the company.
• Firing of managers who don't perform well. If a company's stock is not performing well(does not appreciate), such would usually be tied to its board and managers. Stockholders are the owners of a company because their funds are being used to trade hence can threaten to replace or actually replace any manager who is not performing well. By so doing, the managers that are retained will be motivated to perform really well in order to retain their jobs hence translate to better company performance.
• Threat of hostile take over. Stockholders could also threaten a company's board of being taken over by a proven and well accomplished company , if their stock price does not improve overtime. When the managers or board realize that their job is being threatened, they will be motivated to act fast by ensuring that the company's stocks yield adequate return in the long run.
b.
What should be paramount to managers is how to ensure that their company's intrinsic stocks value(an estimate of the true value of a stock, that is premised on well calculated risk) are well maximized. The stockholders should also be carried along while this process is on going. By maximizing their stock's intrinsic value, such would bring about high value to the stocks, while as time goes on, the actual stock price will be much closer to the intrinsic value of the stocks.
Answer:
A. internal rate of return.
Explanation:
Net present value method: In this method, the initial investment is deducted from the cash inflows of the discounted present value. If the sum comes under positive than the project would otherwise not be beneficial to the company.
The internal rate of return is that return in which the net present value is zero, meaning that the initial investment is equal to the present value of the annual cash flows after taking into account the discount factor
Moreover, the IRR could be in multiples also i.e multiple IRR.
<span>Profit is the payment to
entrepreneurship. When the entity’s amount earned exceeds the amount spent in
buying, operating, or producing something and it has a financial gain, this is
then the term we call the profit. This
is what an entity obtains when the amount of revenue from a business activity exceeds
the expenses, costs and taxes which are all needed to sustain the activity. The
owner may or may not decide to use the profit on the business. This is also defined as the money the
business makes after all the expenses have been taken into account. It is any
company’s goal to consistently earn profit. This is the reason why much of
business performance is based on the various forms related to profitability. </span>
Answer:
The correct answer is: Chain.
Explanation:
A chain network is a hierarchical structure in which each component of the chain or employee must transmit a message to its immediate hierarchical coworker. Chain networks can flow upwards or downwards in both cases working with the same pace of communication. Chain networks are usually implemented in bureaucratic institutions where the hierarchical structure is well-defined and the decision-making is centralized.
