Answer: C. Top level managers may pursue their own interests over that of the company.
Explanation:
The scenario given in the question explains that top level managers may pursue their own interests over that of the company.
In the case of sole proprietorship or partnership business, the revenue generated by the firm or the profit made belongs to the owners. In the case of of a Corporation, this isn't the case as the revenue should be used for Shareholders benefits. Sometimes, there may be a conflict of interest which may then bring about a situation whereby the top level managers pursue their own interests over that of the company.
Hence, the correct option is C.
High return on an investment is associated with high risks.
the bigger amount you give for an investment, the bigger possibility that you can have bigger return however the higher risk that you can loss a big amount of money also.
Answer:
Equitable remedy
Explanation:
The equitable remedy is the actions taken by the court in order to solve the breach or the dispute of the contract done.
Since in the given question it is mentioned that the two parties are entered into a contract where the Nate refuse for delivered the goods and maggie ask a court to order Nate to perform his duty so this represent the equitable remedy
Answer:
Assets increase by $10,000
Total stockholders' equity increases by $10,000
Explanation:
To see impact of transcation mentioned in question on asset, liability and equity lets first begin with journal entry. Journal entry is given below.
Debit New Asset 110,000
Credit Cash Asset 40,000
Credit Old Asset 60,000*
Profit on disposal 10,000
*Old asset net book value = cost - accumlated depreciation
=100,000- (4*10,000) = 60,000
So this is clear that the asset and equity will increase as result of transaction mentioned above them. There will no impact on liability.