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Ivenika [448]
3 years ago
6

Managerial reputation is an _____ incentive that helps to mitigate the _______ principal-agent problem. Multiple Choice

Business
1 answer:
Serggg [28]3 years ago
7 0

Managerial reputation is an <u>External </u> incentive that helps to mitigate the <u>Owner-manager </u> principal-agent problem.

Explanation:

<u>The theory of incentive  propose that the  behavior of an individual  is motivated by the “pull” of external goals, such as rewards, money, or recognition. </u>

In many situations in which a particular goal, such as a promotion at work, can serve as an external incentive that helps activate particular behaviors in an employee

<u>Monetary incentives means to  reward the workers for their  performance and productivity through money. </u>

<u>Monetary incentives also  include employee stock options, profit sharing plans, paid time off, bonuses and cash awards.</u>

<u />

<u>So we can say that </u>

Managerial reputation is an <u>External </u> incentive that helps to mitigate the <u>Owner-manager </u> principal-agent problem.

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A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the
eduard

Answer:

$17.9469

Explanation:

Calculation for what dollar wage must be paid in the third year

Since the first year is tend to be the base year in which the real wage and nominal wage are both $15 per hour in that year.

The real wage is suppose to increase by 2 percent in the second year which means that the real wage in year two will be $15.30 ($15 * 1.02) per hour.

In a situation where the real wage was supposed to also increase by 2 percent in the third year, this means that the real wage in year three will be $15.606 ($15.3 * 1.02) per hour.

Therefore In order for us to find the nominal wage in third year , we have to index the real wage in order for it to adjust for inflation. Thus the nominal wage in third year will be $17.9469($15.606 * 1.15).

Therefore what dollar wage must be paid in the third year will be $17.9469

3 0
3 years ago
Identify how planned investment will change in each scenario. Airwings, a commercial airline manufacturer, becomes optimistic ab
kari74 [83]

Answer:

See explaination for the details of the answer.

Explanation:

1) Increase

As business is optimistic about its future, such business will start capacity expansion to cater for consumer demand.

2) Decrease

Higher real interest rate simply means borrowing cost is higher for the firms and so that they will reduce the investment in respose to that.

3) Decrease

A lower tax means higher profits and firms can pass these benefits to consumers with lower prices, to employees with higher wages and to the government with tax on profit. However, if the rate of tax itself has been increased then in that case corporates will see higher tax as a dampener in sentiments and they might curtail investment plans.

4) Decrease

A recession means there will be lesser economic activity overall and demand will be lower so as the consumption. In such case, planned investment will be reduced.

7 0
3 years ago
2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qua
Vadim26 [7]

The original data is :

Data for Hermann Corporation

                                          Per unit     Percent of sales

Selling price                         $ 75              100%

Variable expenses                  51                 68

Contribution margin             $ 24               32%

The fixed expenses are $ 75,000 per month and the company is selling 4000 units per month.

Solution :

                                                     Present             Proposed

Sales                                             300000            375000

Less : Variable cost                      204000           275000

Contribution margin                     96000               100000

Less : Fixed expenses             <u>    75000     </u>      <u>     75000    </u>

Net income                                   21000                25000

The net operating income :      Increases          4000

Net operating income = increased sales Net income - current sales net income.

Therefore the higher quality component should be used.                                                            

8 0
2 years ago
Our company sells flat screen tvs to retailers for $1,000. The total fixed costs for plant operation is $60,000. It costs us $70
Sedbober [7]

Answer:

<h3><em><u>i</u></em><em><u> </u></em><em><u>d</u></em><em><u>o</u></em><em><u>n</u></em><em><u>'</u></em><em><u>t</u></em><em><u> </u></em><em><u>k</u></em><em><u>n</u></em><em><u>o</u></em><em><u>w</u></em><em><u> </u></em><em><u>i</u></em><em><u> </u></em><em><u>h</u></em><em><u>a</u></em><em><u>v</u></em><em><u>e</u></em><em><u> </u></em><em><u>n</u></em><em><u>o</u></em><em><u> </u></em><em><u>a</u></em><em><u>n</u></em><em><u>s</u></em><em><u>w</u></em><em><u>e</u></em><em><u>r</u></em><em><u> </u></em><em><u>t</u></em><em><u>o</u></em></h3>

Explanation:

<em>s</em><em>o</em><em>r</em><em>r</em><em>y</em><em> </em><em>a</em><em>g</em><em>a</em><em>i</em><em>n</em><em> </em><em>i</em><em> </em><em>n</em><em>e</em><em>e</em><em>d</em><em> </em><em>a</em><em>n</em><em>s</em><em>w</em><em>e</em><em>r</em><em> </em><em>t</em><em>o</em><em>o</em><em>,</em><em>a</em><em>n</em><em>y</em><em>o</em><em>n</em><em>e</em>

4 0
2 years ago
DUE TODAY PLEASE HELP T^T
jonny [76]

Answer:

i think its true

Explanation:

5 0
3 years ago
Read 2 more answers
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