All categories

3 years ago

Which of the following characteristics of a public stock company deals with principals and agents?

Business

1 answer:

Galina-37 [17]3 years ago

7 0

Answer:

C. Separation of legal ownership and management control.

Explanation:

Public stock companies are companies owned by the shareholders, founders; managed and controlled by appointed professionals and whose shares are publicly quoted on the stock exchange.

One of the characteristics of public stock company deals with principal and agent is the principle of separation of legal ownership and management. It means that the control and management of a company is handed to professionals who are not the owners of the company. The separation will enable the prefessionals to conduct the affairs of the firm using their skills and experience.

Advantages of separation of legal ownership and management are ;

-it allows for checks and balances . The company will be able to access and check the excesses of the professionals and vice versa.

-Efficient utilization of capital. This is the duty of managers, who look for ways the firm's capital will be minimized to generate profit that will be distributed to shareholders.

-Professional skills. The appointed managers are professionals in their field thus would make use of their skills to steer the affairs of the firm.

You might be interested in

W.C. Cycling had $55,000 in cash at the year-end 2011 and a $25,000 en cash at year end 2012. The firm invested in property, pla

alexgriva [62]

Answer:

1. c. Operating cash flow = 50,000

2. b. Net income=$115,000

Explanation:

1. The Cashflow for the year is calculated by adding the balances from the Financing, Investing and Operating Activities in the following manner;

Cash Flow for the year = Opening Balance + Operating Activities + Investing Activities + Financing Activities

Operating Activities = Cash Flow - Opening Balance - Investing Activities - Financing Activities

= 25,000 - 55,000 - (-250,000) - 170,000

= $50,000

2. Net Income is calculated from Operating Activities in the following manner;

Net Income = Operating Cashflow + Increase in Inventory - Increase in Accruals - Depreciation

= 50,000 + 100,000 - 25,000 - 10,000

= $115,000

8 0

4 years ago

Suppose your boss tells the people you work with, "If any worker shows up at my house on Saturday and helps me clean my pool for

ozzi

Answer:

Unilateral contract

Explanation:

An unilateral contract is a contract that can only be enforced when the performing party performs the action that he agreed upon. It is only when this actions is completed, that the offering party is obliged to make a payment.

In this case, your boss has offered $75 if you clean the pool. This is an unilateral contract because your boss is only obliged to pay that money once you finished cleaning the pool. If you never clean the pool, you simply will not receive the $75.

6 0

3 years ago

Should be stored in the refrigerator with the temperature between 35 and 40 degrees Fahrenheit

Gnesinka [82]

plastic wraps, food bags ,and airtight containers are the best choice for storing food in your refrigerator.

Explanation:

leaving stored food in the fridge without it being covered may result in it growing mold or drying out.

6 0

3 years ago

Read 2 more answers

Ponzi Products produced 100 chain-letter kits this quarter, resulting in a total cash outlay of $10 per unit. It will sell 50 of

zalisa [80]

Answer:

Ponzi Products

a) Net income for the next quarter:

= $50

b) Cash outflow for this quarter = $1,000

c) Cash inflow in the third quarter = $550

d) Net working capital in the next quarter = $550

Explanation:

a) Production of chain-letter kits for the quarter = 100 units

Total production cost (outlay) = $1,000 (100 * $10)

Sales in the second quarter = $550 (50 * $11)

Sales in the third quarter = $600 (50 * $12)

Cash collections:

Third quarter = $550

Fourth quarter = $600

a) Net income for the next quarter:

Sales revenue = $550

Production cost 500 ($1,100 * 50/100)

Net income = $50 ($550 - $500)

b) Cash outflow for this quarter = $1,000

c) Cash inflow in the third quarter = $550

d) Net working capital in the next quarter = $550

6 0

3 years ago

You invested in a 3-month certificate of deposit at your bank. Your investment was $1,902, and at the end of the term you will r

Art [367]

Answer and Explanation:

The computation is shown below:

a. Holding period return would be

= Income + (End of Period Value - Initial Value) ÷ Initial Value

= 0 +($2,178 - $1,902) ÷ $1,902

= 0 + $276 ÷ $1,902

= 14.51%

b. The annual percentage rate is

For 3 months, the rate is 14.51%

Now

For 12 months, it is

= 14.51% ÷ 3 × 12

= 14.51 % × 4

= 58.04%

c. The effective annual rate is

= ( 1 + r ÷ m)^m - 1

= (1 + 58.04% ÷ 4)^4 - 1

= (1 + 0.5804 ÷ 4)^4 - 1

= (1 + 0.1451)^4 - 1

= (1.1451)^4 - 1

= 1.719387079 - 1

= 0.719387079 or 71.94%

8 0

3 years ago