1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
wlad13 [49]
4 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]4 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.

You might be interested in
All of the following are considered input barriers to entry except:(A) control of a key raw material by a single firm.(B) the ab
padilas [110]

Answer:

(C) the fact that workers in a particular industry belong to a union.

Explanation:

All other options are considered as possible entry barriers because they may put hindrance for an entrepreneur to enter the field of producers . The fact that workers of a particular industry belong to a union because role of union comes only when industry starts functioning . It can not play any role at the start  of an industry.

5 0
3 years ago
All of the following are ways an organization that incorporates enterprise-wide risk management (ERM) with its strategic plannin
sergeinik [125]

All of the following are ways an organization that incorporates enterprise-wide risk management (ERM) with its strategic planning process improves its decision-making, EXCEPT It can eliminate risks to its business model.

A business model describes how an organization creates, delivers, or acquires value in an economic, social, cultural, or other context. The process of building and modifying business models, also called business model innovation, is part of business strategy.

The term business model describes a company's profit plan. Identify the products or services that the company plans to sell, the identified target markets, and the expected costs. Business models are important for both new and established companies.

In its simplest form, a business model provides information about an organization's target markets, the needs of those markets, and the role a company's products or services play in meeting those needs. Business model innovation describes the process by which an organization adapts its business model.

Learn more about business model  brainly.com/question/27093440

#SPJ4

8 0
1 year ago
Suncoast Healthcare is planning to acquire a new x ray machine that costs $200,000. The business can either lease the machine us
miskamm [114]

Answer:

a. what is Suncoast's current debt ratio?

debt ratio = liabilities / equity = $400,000 / $600,000 = 0.67

b. what would the new debt ratio be if the machine were leased? if it is purchased?

if X-ray machine is leased, debt ratio = $400,000 / $600,000 = 0.67

if X-ray machine is purchased, debt ratio = $600,000 / $600,000 = 1

c. is the financial risk of the business different under the two acquisition alternatives?

yes, because a higher debt ratio means that the company is under a higher financial stress since it has more outstanding loans, which increases the financial risk.

7 0
3 years ago
The marketing manager of Easy Peasy Vegetables is working on the package for a new line of self-steaming microwaveable vegetable
goldenfox [79]

Answer: A) usage promotion

Explanation:

When a product is promoted based on what it can do or rather what it is used for, the perspective being used is called a usage promotion. The aim of this is to show the users the benefits of using the products so that they can buy it for that purpose.

The vegetables here are being shown to help a person achieve physical fitness and live a healthy life. The goal is therefore to entice people to buy vegetables so that they are healthy in life.

6 0
3 years ago
what budget is a type of financial report that scrutinizes the inflow of money in a given financial year?
earnstyle [38]

That is known as a cash flow statement.

6 0
4 years ago
Other questions:
  • Bob is a manager at a local toyota dealership who has lost five of his employees during the last year. now he has to make a deci
    15·1 answer
  • The minimum acceptable expected rate of return on a project of a specific risk is the:________
    5·1 answer
  • Tara wants to attend a four-year college to become a math teacher. Which statements explain the possible differences in total ye
    10·2 answers
  • Pharoah Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts. (a) On July 1, (
    8·1 answer
  • The managers of a restaurant have decided to utilize the Hawthorne effect to increase productivity, which means using cameras to
    13·1 answer
  • which of the following is a career you would find in the finance career cluster? A) geologist B equine manager C Tax examiner D
    6·2 answers
  • Please subscribe to me on you tube the channel is Kallen Buzzard it would mean bunches!!
    15·2 answers
  • 1. In what ways do you think the debt of your country influences the life of ordinary citizens? 2. Discuss with reference to a n
    5·1 answer
  • The first mall in mumbai, india​ was successful. Builders proceeded to construct three more right away. However, they have more
    13·1 answer
  • which of the following is omitted in a barter transaction?a) tradeb) medium of exchangec) store of valued) money
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!