Answer: Increasing current profits when doing so lowers the value of the company's equity.
Explanation:
The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.
When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.
If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.
Management is the big-picture process of making business run smoothly through effective planning, organizing, staffing, training, leading, and controlling the company.
The term value chain means we include the supply chain in our analysis and management with B) the downstream portion of the chain and distribution, such as marketing.
The choice represent internalization theory.
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Explanation:</u></h3>
The outward movement of the operations of any firm can be defined as an internalization. Internalization is mainly carried out for the purpose of achieving advantages when a firm is located at foreign nations. This may be because there exists a larger market for a particular product in foreign nations.
Making investments at foreign regions also refers to internalization. The internalization theory of the firms that are multi nationally located has investments in intangible assets that has a public good properties. In the given example represents the internalization theory choice of economic theory.
Answer:
3.10; 1.53
Explanation:
Total Current Assets:
= Cash + Receivables + Inventory + Other Current Assets
= $99 + $91 + $179 + $15
= $384 million
Total Current Liabilities:
= Accounts Payable + current portion of long-term debt
= $92 + $32
= $124 million
Current Ratio:
= Total Current Assets ÷ Total Current Liabilities
= $ 384 ÷ $ 124
= 3.10
Acid Test Ratio:
= (Cash + Accounts Receivables ) ÷ Current Liabilities
= $(99 + 91) ÷ $124
= 1.53
