The cash bonuses are an example of this economic principle of People usually take advantage of opportunities to make themselves better off.
Explanation:
A cash bonus applies to a large amount of money offered to an individual for good performance either periodically or daily. An employee, division or the whole organisation, depending upon the extent at which performance goals were achieved may earn a cash bonus for higher than expected achievements.
Let's take the example of Company ABC. The company has a 15-person sales team. Each team member has to add 10 accounts each. At the end of every year, the company can give every employee a cash bonus of $1,500 in order to meet their objectives.
If the financial markets are efficient, then investors should expect their investments in those markets to Market efficiency. The Market efficiency refers to how well current prices reflect all available, relevant information about the underlying assets' actual value. Because any information is useless in a truly efficient market, beating the market is impossible.
If the New York Stock Exchange is a well-functioning market, Company ABC's share price accurately reflects all available information about the Market. As a result, all NYSE participants could predict that Company ABC would release the new product. As a result, the company's stock price remains unchanged.
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Answer:
$1,500
Explanation:
Since the season lasts 4 months, the membership fees must be recognized over the whole 4 month period, that means that the club must recognize $100 / 4 = $25 per month per membership sold.
The company sold 60 season memberships, so it must recognize 60 x $25 = $1,500 in revenues.
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