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3 years ago

Which of the following mechanisms would be most likely to help motivate managers to act in the best interests of shareholders?

Business

1 answer:

myrzilka [38]3 years ago

5 0

Answer:

The correct answer is d) Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries.

Explanation:

Option D. represents two situations that perfectly describe the interest that the shareholders pursue: the maximization of the profits of the company where they have their resources invested.

The shareholder, on the other hand, is also an investor, since he contributes capital with a view to obtaining a dividend.

Its investment is said to be in equities, given that there is no contract through which the shareholder will receive fixed fees in return for his investment. Their remuneration is through two ways:

Dividend
Increase in the price of the company. This is produced by its good progress and its ability to generate future benefits, as well as by the increase in assets through past benefits.

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Naddika [18.5K]

Egged gig for the next month or something

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3 years ago

Which of the following statements is true if total fixed costs decrease while the sales price per unit and variable cost per uni

Trava [24]

Answer:

D. The breakeven point decreases.

Explanation:

Breakeven point of a business is defined as the point where it's total cost and total revenues are equal, at this point there is no gain or loss. Hen revenue is above this point profit is made, and when revenue is below this point there is loss.

The formula for break-even is

Breakeven point= Total fixed cost/(Sales price per unit- Variable cost per unit)

Since sales price and variable cost is constant, let's say

(Sales price per unit- Variable cost per unit)= constant (k)

So when we cross-multiply in the formula

Breakeven* k= Total fixed cost

It shows that Breakeven point is directly proportional to Total fixed cost.

So a reduction in Total fixed cost will result in a reduction in Breakeven point.

3 0

3 years ago

Have Americans always shared the same social and economic goals throughout history?

Elodia [21]

Answer:

Yes, Americans always shared the same social and economic goals throughout history.

Explanation:

The social economic segmentation of the American market. Market segmentation is the movement of distributing a widespread customer or business exchange, ordinarily consists of existent and potential clients, into sub-groups of customers which is recognized as segments which is based on the different type of shared features.

In distributing or segmenting businesses, researchers look for common features such as distributed needs, mutual interests, related lifestyles or even comparable demographic characterizations.

8 0

3 years ago

Support functions manage and improve the efficiency of an organization's conversion processes so that more value is created.

HACTEHA [7]

Answer:

a) true

Explanation:

Support Function include Information Technology, Human Resources, Finance and Marketing. These are there to ensure that conversion process is efficient by providing support services such as sourcing of talent, fund management, communication.

3 0

3 years ago

On January 2, 2020, Pull Corp. paid $516,000 for 24% (96,000 shares) of the outstanding common stock of Olivia Co. Pull used the

cestrela7 [59]

Answer:

(a). Journal entry shown below:

(b). Balance in the investment account = $649,167

Explanation:

As per the data given in the question,

Journal entry to record the sale of the 20,000 shares:

Cash A/c Dr. $240,000

(20,000×$12)

Loss on sale of investment A/c Dr. -$69,166.67

($170,833-$240,000)

To Investment in Olivia co. A/c $170,833

($820,000÷96,000×20,000 shares)

(To record the sale of 20,000 shares)

Balance in the investment account in Jan 1 2020 = $820,000

Investment in Oliver Co. sold = $170,833

Balance in the investment account after the sale = $820,000-$170,833

=$649,167

6 0

3 years ago