Their benefit is to all of society rather than to an individual
Answer:
The correct answer to the following question will be Option D (Financial distress and agency costs).
Explanation:
- A cost of an agency is a form of company's internal expense that comes from an employee working on behalf of action of the principle. Agency costs usually occur from core redundancies, confusion, and delays, such as shareholder and management conflicts of interest.
- Distress expense applies to the expenses that a financially distressed company faces beyond the business cost, such as increased capital expenses. Troubled companies tend to have a tougher time fulfilling their financial responsibilities, which turns into a higher chance of default.
- When evaluating the company's value as a feature of market structure, the present value of the tax shield gain is balanced by the current value of the anticipated financial distress and agency expenses, which results in an ideal internal market structure.
Therefore, Option C is the right answer.
Answer: ART
Explanation:
Account receivable turnover(ART) = Sales revenue/Average Account Receivable
= $47,561/$19,595
= 2.427
Inventory Turnover(INVT) = Cost of sales/Inventory
= $32856/$16240
= 2.023
Property Plant and Equipment Turnover(PPET) = Sales/Property Plant and Equipment
= $47561/$19813
= 2.400
Therefore, the ratio that is highest is the account receivable turnover
To derive net domestic product (NDP) from gross domestic product (GDP), we must subtract depreciation from GDP.
Depreciation is the reduced value of an asset over time, wear and tear on the asset. Cars, machines, equipment are examples of items that depreciate over time.
