Answer :
The owners of a corporation are the __________ (shareholders of the company, board of directors, or management team members). The primary goal of the corporate management team is to (minimize or maximize) the shareholder's wealth by __________ (minimizing or maximizing) the company's (employee retention and efficiency, company's stock price, or company's production costs) over the long run.
Explanation :
Shareholders are the primary owners of the company who have company's common stock with expectation on their investment in form of dividends and share appreciation.
The primary goal of the corporate management team is to maximize the wealth of their principal (shareholders) who have entrusted them with their fortunes .
Shareholders' wealth maximization objective is achieved when management team invest in a viable project or reduce the operating costs of the company.
Answer:
c) relatively high variable costs
Explanation:
Operating leverage is a ratio that is used to analyze and understand the cost structure of a business. It gives the relation between the variable and fixed cost to the the total cost of running the business.
A business with a large amount of fixed cost relative to variable is said to have a high operating leverage . For such business, operating income would be more volatile because the operating income would not increase in commensurate proportion as sales revenue.
And a company with low operating leverage has low amount of fixed cost relative to variable cost and therefore a relatively high variable costs
Operating leverage is calculated as
Contribution /Earnings before interest and Tax
Investment banks help companies to purchase, sell and make investments using bonds while commercial banks are concerned on managing deposits on both savings and checking account.
Investment banks aid companies on bringing their investments on public offers; commercial banks are focused on providing security for the clienteles money.
Investment banks have some degree of freedom in choosing their own strategies while commercial banks have more risks because they are open to public transactions.
Answer:
Studying finance can prepare you not only for careers in the financial services sector, but also for tasks in your everyday life. ... And because finance revolves around planning and analysis, studying finance and becoming more financially literate enables people to make better personal financial decisions.
