Stone criticizes the agency argument
because of the following reasons:
1.The law does not hold that directors
are mere agents of the shareholders
2. In the real world, the shareholders
do not select the directors
3. Why should the directors have more moral accountability
to the shareholders than to other people
Answer:
Supply curve for loanable funds would shift, leading to a fall in the equilibrium interest rate.
Explanation:
If the people are convinced that saving is important and start saving more, the supply of loanable funds will increase. As a result the supply curve will shift to the right. This shift in the supply curve will be accompanied with a decline in the equilibrium interest rate.
So, the correct answer is: supply; downwards.
He had to account for the accruals and the prepayments during the period
Explanation:
When the adjustments are made and they are posted in the ledger then it is called as the trail adjustments and the second trail balance is prepared and it is given in the accounting cycle
After all the adjustments are made they are entered in the books of the company and the main purpose of them is to check the equities between the debit and the credit
Answer:
d. new entrants will have to spend heavily to overcome existing customer loyalties.
Explanation:
When the product is different and can be recognized by an incumbent so the same should be acted as the entry barrier as the new entrants should spend more amount so that they would able to overcome the loyalties of the customer that are pre-existed in the market
So according to the given situation, the option d is correct
And, the remaining of the options should be incorrect
