Answer:
A. Bill chooses to pursue a risky investment for the company's funds because his compensation will substantially rise if it succeeds.
Explanation:
An agency conflict problem usually arises when the agent (managers) do not act in the best interest of his principals (e.g. shareholders) usually because of selfish interests of the agent (manager).
I hope my answer helps you
Answer:
change in the Money supply = $2000
Explanation:
given data
deposit = $1,000
reserve ratio = 0.50
to find out
how much will checking deposits in the banking system increase as a result
solution
we get here change in the Money supply that is express as
change in the Money supply = Change in the Monetary base × Money multiplier ............................1
here
Money multiplier = ..................2
Money multiplier =
Money multiplier = 2
put value in equation 1
change in the Money supply = 1000 × 2
change in the Money supply = $2000
Answer:
Real rate interest = 2.675
Explanation:
given data
nominal rate of interest = 4.35 % = 0.0435
rate of inflation = 1.63 % = 0.0163
to find out
what is the real rate of interest
solution
we get here real rate of interest that is express as
Real rate interest = (1 + nominal rate) ÷ (1 + inflation rate) - 1 ...................1
put here value we get
Real rate interest = - 1
Real rate interest = 1.026763751 - 1
Real rate interest = 0.026763751
Real rate interest = 2.675
Answer:
The entry to record the payment:
Debit Accounts Payable $10,000
Credit Purchase discount $300
Credit Cash $9,700
Explanation:
Credit terms of 3/10, n/30 means that 3% discount for the payment within 10 days and the full amount to be paid within 30 days.
On January 1, the company purchase inventory:
Debit Inventory $10,000
Credit Accounts Payable $10,000
The company makes the payment on January 10 and takes the appropriate discount:
3% x $10,000 = $300
The entry to record the payment:
Debit Accounts Payable $10,000
Credit Purchase discount $300
Credit Cash $9,700