Answer:
principal-agent problem
Explanation:
In a corporation, the principal-agent problem refers to conflict of priorities that exist between the shareholders and the management. Management has the duty of increasing the corporation value, and therefore increasing the shareholders' wealth. But sometimes, management makes decisions that benefit them more than the shareholders. This conflict of interest can be really dangerous for a corporation, since managers may safeguard their own personal interests and sacrifice the corporation's future value.
Answer:
The correct answer is diversify geographically.
Explanation:
Diversification is one of the strategies most used by companies when it comes to expanding their market horizon. In this sense, diversifying is synonymous with expansion, growth, investment and openness.
In general, companies that are committed to diversification seek new market niches or commercial possibilities. This may be motivated by several reasons, ranging from corporate growth opportunities to the implementation of internal restructuring plans.
Answer:
The correct answer is letter "B": towards the interest.
Explanation:
Mortgage payments are composed of the principal and the interest. <em>During the early life of the mortgage, most of the payments go towards the interest because it is calculated according to the outstanding balance of the mortgage</em>, which is higher at the beginning but as the loan approaches, the maturity date most of the payments will be directed to the principal and a minimum to interest.
Answer:
FV= $1,254.4
Explanation:
Giving the following information:
Initial investment= $1,000
Number fo years= 2
i= 12% compunded annually
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
PV= present value
FV= 1,000*(1.12^2)
FV= $1,254.4