Social capital increases cooperation among individuals inside and outside the firm.
What is social capital ?
Social capital allows a group of people to work together effectively to achieve a common purpose or goal. It allows a society or organization, such as a corporation or a nonprofit, to function together as a whole through trust and shared identity, norms, values, and mutual relationships.
What is the social capital theory?
Social capital theory contends that social relationships are resources that can lead to the development and accumulation of human capital. For example, a stable family environment can support educational attainment and support the development of highly valued and rewarded skills and credentials.
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Answer:
Small individual investors will benefit the most.
Explanation:
From the case given, it can be established that small individual investors represent the bulk of shareholders or business owners.
Also, from Smith Jones stock, we see that Pension and Mutual Fund constitute a bulk in the share position, and the direct intervention of shareholders motivate the management.
From the foregoing analysis, the shareholders holders have thus seek to incorporate corporate governance in the organization as a tool to reduce the agency problem between business owners and management. By this, management objectives and the shareholders could be aligned. The business owners singular objective is the profit maximization of their wealth, while the management is interested in their job security, status, mutual funds, pension and all. Since this objective of management has been duly taken care of by the shareholders, it is believer that this will boost the management morale and ultimately improve their performance. The result is thus increase in organisational performance with resultant growth in profit, share price and returns from the business. These are benefits to the individual investors.
Answer: 17.22%
Explanation:
Effective interest rate is calculated by the formula:
= (1 + APR / Number of compounding periods) ^ Number of compounding periods - 1
Number of compounding periods = 12 months in the year
= (1 + 0.1599/12)¹² - 1
= 0.172155
= 17.22%
Answer:
The correct answer is Worker productivity
Explanation:
The productivity of work is the efficiency of the productive activity of men expressed by the correlation between labor expenditure (at the level of society, of a branch, of a company or of a single worker) and the amount of material goods produced (established in money or in kind) in a unit of time. It is determined by the amount of time invested in developing the production unit or by the amount of production manufactured in the time unit. The level of labor productivity is a very important index of the progressive nature of a mode of production of a given social regime. Every new social regime, Lenin said, beats the one that precedes it by achieving greater labor productivity. Raising labor productivity means saving live work and social work, that is, reducing the socially necessary time to produce the unit of merchandise, reducing its value. The proportion of living labor decreases while the proportion of past (materialized) labor increases relatively and in such a way that the overall sum of work locked up in merchandise is reduced. This law manifests the decisive meaning of the progress of the technique for the growth of labor productivity.
B. Credit; discount on bonds payable