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zepelin [54]
3 years ago
15

Residual income is ____________.A. the difference between the net income the analyst expects the firm to generate and the requir

ed earnings of the firm. B. the difference between the net income the analyst expects the firm to generate and the reported earnings of the firm. C. adjusted net income the firm reports. D. the book value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital. PreviousNext
Business
1 answer:
BARSIC [14]3 years ago
3 0

Answer:

A. The difference between the net income the analyst expects the firm to generate and the required earnings of the firm.

Explanation:

Residual income measures an organisation's internal corporate performance by looking at the difference between the income geneated by the firm and the required minimum returns. It can be described as the excess of generated income over required earnings for the firm.

For personal Income, residual income represents the income an individual has left after deducting all personal expenses and all debts.

Based on the question, therefore, residual income will be the excess amount after a company's analysts' deduct the required earnings of the company from what the company generates.  

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What effect do rising input costs have on the price of a good.
Genrish500 [490]

Answer:

Explanation:

Inputs are the factors required for production to take place. They may include labor and raw materials. In economics, inputs are the four factors of production that include land, labor, entrepreneurship, and capital.

The final cost of a product is dependent on the costs of production. The cost of production is an aggregation of the cost of each input used in the production. For a company to stay in operation, it must meet all its production costs. These costs are spread to each unit produced.  A high production cost will result in an expensive product. Should the cost of any of the input increase, then the overall cost of the products will rise.

4 0
3 years ago
Kim hires michelle to go to the art gallery and purchase a specific painting for him. the painting costs $1,500. because this is
svetoff [14.1K]
<span>Under agency law, Michelle can work as Kim's agent in the purchase of the contract. Kim would be the principle under the contract, Michelle would be the agent, and the gallery would be the 3rd party. Kim needs to authorize Michelle to complete a contract on his behalf and he will in turn be bound, just as the gallery will be bound.</span>
5 0
3 years ago
2. You are the human resources manager for a famous retailer and are trying to convince the president of the company to change t
Colt1911 [192]

The goal of any reasonable firm is to optimize its earnings. Providing incentives to the workers is one of the management methods to induce maximum effort from them in order to achieve the objective of the firm.In the present structure of employee settlement where the retail personnel is paid a fixed wage of $20 per hour, there's no reward for the retail sales staff to push more difficult for the sales and increase the profits. There is no penalty on them in case the sales go down and the profits are negatively affected.In the proposed worker compensation structure where each of the retail personnel is paid 1 percent of the shop's daily revenues over and above a fixed wage of $10 per hour, the staff is motivated to work harder to increase the sales and the profits of the firm. Each of the retail staff members then will be motivated by self-interest and devise methods to increase their productivity so that they can maximize their everyday compensation. Hence, by taking care of their self-interest, they will indirectly help in attaining the company's objective of maximizing its daily earnings to $25,000 per shop.

4 0
2 years ago
When a company services the broad market and has a low degree of product differentiation, it is most likely Group of answer choi
denis23 [38]

When a company services the broad market and has a low degree of product differentiation, it is most likely pursuing a cost-leadership strategy.

<h3>What is Cost Leadership?</h3>

Cost leadership is a term used when a company projects itself as the cheapest manufacturer or provider of a particular product or commodity in a competition. It is difficult to deploy the strategy because the management must constantly work on reducing cost at every level to remain competitive.

Cost leadership is a part of marketing strategy. Although, it is highly effective in gaining market share as well as drawing the customers' attention, it is difficult to deploy. The management team of the company has to constantly work towards reducing the cost of not just one product, but the entire range of products in the company's portfolio.

<h3>What Is Cost Leadership Strategy?</h3>

Cost leadership is a business-level strategy employed by companies who wish to gain a competitive advantage by being the lowest-cost producer of a service, production process, or commodity.

Therefore, we can conclude that the correct option is it is most likely pursuing a cost-leadership strategy.

Learn more about Cost Leadership Strategy on:

brainly.com/question/14395542

#SPJ4

4 0
1 year ago
Assume you own 300 shares of ABC stock and recieve a stock dividend of 5%. As a result, the number of shares you own will change
kondaur [170]

Answer:

correct option is B. 315: 0

Explanation:

given data

existing share = 300 shares

stock dividend = 5%

to find out

number of shares you own will change and total wealth will increase by

solution

we get here new no of share that is express as

new no of share = existing share + ( stock dividend × existing share )    ...........1

put here value we get

new no of share = 300 + ( 5% ×300 )

new no of share = 300 + 15

new no of share = 315

and

stock dividend is not increase either company wealth or the stockholder wealth

so no of share increase with decrease per share

so that there is no change in wealth

so correct option is B. 315: 0

6 0
3 years ago
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