A solution that will help in the agency problem in terms of
publiclyminus – held corporations is by through having bonuses in the company
or organization that will be based on primarily the short term results that
they have acquired in the company.
Answer:
1. the prices of existing bonds would rise
Explanation:
General Interest rates and price of a bond are inversely related. The market interest rate also reflects an investors expected rate of return also referred to as yield to maturity i.e YTM.
Mathematically, price of a bond is the present value of it's future stream of coupon payments as well as principal repayments discounted at investors expected rate of return i.e YTM.
So, when market interest rates fall in general, this would lead to a rise in the price of bonds as general interest rates represent yield to maturity.
Answer:
Compensation management is the act of distributing some type of monetary value to an employee for their work by means of the company's policy or procedures. ... Reward management consists of analysing and controlling employee remuneration, compensation and all of the other benefits for the employees
Answer:
The economic incentive was to produce enough to meet the output target, without regard for quality or cost.
Explanation:
As the only condition for the payment to the producers is linked with the output thus there is no constraint for the quality and the sales of the product. This indicated that the producer will get the reward irrespective whether the quality or cost of the product is feasible or not.
Black markets are illegal markets that emerge in response to price controls. A few buyers are able to obtain the good at the open-market price; the rest must resort to illegal means. The additional demand is met by underground suppliers selling at much higher prices.
The government does not support the black market or any of their actions with getting items and selling them in other forms. Those who are in demand of a good when they have a hard time in getting it may purchase it illegally at a higher price just so they can receive that good. When there is an exchange of goods in the black market, these items are usually prohibited by the government and therefor illegally being sold.
