It means that one party in a transaction is in possession of more information than the other.
Answer:
wage
Explanation:
Since Amy is paid by the hour worked, she is paid with a wage. Contrary to salaries, which are fixed period compensation, wages are referring to compensation based on the total number of hours worked.
Salaries are usually related to long-term employment, while wages are common for certain projects, freelancing and part-time jobs.
Answer:
True
Explanation:
Information asymmetry occurs when one of the two parties in a transaction has more information than the other. This causes the person that has the least information to likely make bad decisions.
In the question, we have an example of information asymmetry: incumbent managers simply have more information about the companies, because they have actually worked in managing them.
Outside managers, while as qualified as incumbent managers, do not have as much information about the companies, because they have not actually worked there.
Answer:
A) Added benefits such as health insurance provided to employees of large corporations.
Explanation:
A struggling rock band can be considered an entrepreneurial venture, depending on how much Nick loves music. But struggling ventures cannot offer employees or coworkers the same benefits or perks that large and established companies can offer. The example used here was health insurance but other perks may include paid vacation, paid sick days, retirement plans, etc.
Answer:
$3,210.94
Explanation:
The NOPAT of the Edwards electronics can be determined through the following mentioned method.
Sales: $11,250
Operating costs: ($5,500)
Depreciation: ($1,250)
Interest payment ($218.75)
($3,500*6.25%)
Profit before tax $4,281.25
Taxes(25%) ($1,070.31)
NOPAT $3,210.94
