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wlad13 [49]
3 years ago
15

Company A pays its managers a fixed salary. Company B ties compensation to the performance of the stock. Which company’s compens

ation would most help to mitigate conflicts of interest between managers and shareholders?
Business
1 answer:
11111nata11111 [884]3 years ago
5 0

Answer:

Company B

Explanation:

The reason is that the interest of shareholders is to maximize its investment worth and the manager desires to have better salary which is cost to the shareholders. This means that the shareholder's interest are in conflict with that of management which is also known as agency problems. The alignment of interests of both shareholders and the manager is when the payments made to managers in compensation for their salaries are in shares not in cash form. The manager would now work hard to generate more profits than before, this will increase the value of shares in stock exchange which every shareholder desires. So Company B has mitigated conflicts of interest between managers and shareholders by offering managers shares in compensation for their services offered.

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A modified DCF analysis is best for evaluating and selecting the optimal strategic alternative when a company has ___ goal(s) an
Trava [24]

Answer: single; quantitative

Explanation:

The discounted cash flow analysis is a method that is used to determine the value of a project, security, or assets by using time value of money.

The discounted cash flow analysis is used in real estate, investment finance, patent valuation etc. A modified DCF analysis is best for evaluating and selecting the optimal strategic alternative when a company has single goal(s) and quantitative measures.

6 0
3 years ago
Under GASB standards, financial information useful for assessing operational accountability is primarily reported in which finan
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Answer: b. Yes; No

Explanation:

The Government Accounting Standards Board (GASB) is simply a non-governmental organization which is private that helps in the creation of accounting reporting standards, for both states in the United States and the local governments.

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3 years ago
Because farm products have a low elasticity of demand a small change in output will have
GaryK [48]
<span>Because farm products have a low elasticity of demand a small change in output will have a similar effect on the price. Since the low elasticity of demand directly relates to </span>pricing, when the smaller change in output happens, a smaller drop in profits does as well. The price of the item will decrease to compensate for less products selling. 
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3 years ago
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Each day, Tasty Tortilla Company incurs total costs of $8,000 to process flour into tortillas. The company can sell the tortilla
Murljashka [212]

Answer:

c. The firm will make an additional $4200 in income per day if it sells taco shells instead of tortillas.

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