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ehidna [41]
2 years ago
5

CPA Inc. is a publicly traded company. The stockholders of this company delegate the authority to make decisions for the company

to a CEO named Joaquin. The stockholders expect Joaquin to make decisions that will benefit the company. However, Joaquin begins to find ways to maximize his total compensation, which hinders CPA's performance. This scenario reflects
Business
1 answer:
lapo4ka [179]2 years ago
4 0

Answer:

The appropriate approach is "Principal-agent problems".

Explanation:

  • A contradiction of objectives or priority between someone individual or organization as well as the authorized accompanying documents to operate over its behalf is considered as Principal-agent problem.
  • The possession of a commodity or fundamental assigns immediate supervision of that resource to some other agency may transpire in whatsoever circumstance.
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Suppose French chocolate soufflé is an inferior good. When income increases and the number of producers in the market decreases
Vadim26 [7]

Answer:

d) The change to the equilibrium price of French chocolate souffle is ambiguous and the equilibrium quantity of French chocolate souffle falls

Explanation:

Inferior goods are those goods whose demand falls with the rise in the income of the consumer.

As per the given case, French chocolate souffle is an inferior good. When income of the consumer rises, his demand for French chocolate souffle will fall.

Similarly, when producers of such an inferior good decrease, the supply of French chocolate souffle shall fall.

With respect to the original equilibrium level, the demand curve shall experience a leftward shift i.e decrease whereas the supply curve too experiences a leftward shift i.e supply falls.

At the new equilibrium level, definitely the equilibrium quantity shall fall, but the change in equilibrium price cannot be ascertained as per the given information.

4 0
2 years ago
What is a bond? in your own words. economics.​
tester [92]

Answer:

A bond is a fixed income instrument that represents a loan made by an investor to a borrower bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments.

Explanation:

5 0
3 years ago
American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. I
In-s [12.5K]

Answer: 19.56%

Explanation:

Effective Rate of Return is the rate that takes into account, the compounding influence of interest rates in a given period.

It is calculated with the formula,

= ( 1 + r/n) ^ n - 1

Where

r = APR

n = no of compounding periods in a year

Interest is paid monthly so nnumber of periods will be 12.

Therefore,

EFF = ( 1 + 18%/12)¹² - 1

EFF = 19.56%

5 0
3 years ago
Which option below best represents what is included in the calculation of the United States gross domestic product (GDP)?
stepladder [879]
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well (in the United States, for example, the government releases an annualized GDP estimate for each quarter and also for an entire year).

All the products by U . S company matter where are they products
7 0
3 years ago
Bob lives in San Diego and loves to eat desserts. He spends his entire weekly allowance on yogurt and pie. A bowl of yogurt is p
liberstina [14]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Current Consumption Marginal Rate of Substitution

= Marginal Utility (MU) of Pecan Pie ÷ Marginal Utility (MU) of Yogurt

= 2

Utility Maximized When Marginal Rate of Substitution (MRS)

=  Marginal Utility of Pecan Pie ÷ Marginal Utility of Yogurt

= $3.75 ÷ $1.25

= 3

According to the analysis, Utility-maximizing MRS (3) is more than the current MRS (2). So to increase the utility bob should have to consume less pecan pie and more quantity of yogurt.  

7 0
2 years ago
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