Agency costs faced by MNCs may be larger than those faced by purely domestic firms because:
- monitoring of managers located in foreign countries is more difficult AND foreign subsidiary managers raised in different cultures may not follow uniform goals.
- monitoring of managers located in foreign countries is more difficult.
- .MNCs are relatively large.
- foreign subsidiary managers raised in different cultures may not follow uniform goals.
<h3>What are multinational corporations?</h3>
Multinational corporations can be regarded as one that have the license to operates in more than one country at a time.
Agency costs faced by MNCs may be larger than those faced by purely domestic firms due to how foreign subsidiary managers raised in different cultures may not follow uniform goals.
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Answer:
Option C.
Explanation:
Risk premium is a term that is used to refer to the return in excess of the risk-free rate of return that an investment is expected to yield.
The risk premium of an asset refers to a kind of compensation that is given to the investors who tolerate the extra risk involved when investing in that particular asset, in comparison to the risk of a risk-free asset, in a given investment.
For instance, the high-quality corporate bonds which are issued by established corporations and earn large profits will typically have very little risk of default. Consequently, bonds of this nature will pay a lower interest rate, or yield, than bonds which are issued by companies that are less established and who have an uncertain profitability with a relatively higher default risk.
If a retailer of luxury products offers personal shopping, free gift wrapping, and free delivery. the retailer is most likely considering which factor when determining the customer services offered : Price image.
<h3>What is Price image?</h3>
Price image can be defined as the way that a customer tend to perceive the price that a company tag on their product.
Some companies can tend to make use of price image as a form of pricing strategy so as to attract customers to their product. Some companies can reduce the price of their product so as to have competitive advantage over other companies that sell the same or similar product as theirs. This Price image are often use in big store or supermarket.
Therefore the retailer is most likely considering which factor when determining the customer services offered price image.
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Answer:
No, no revenue is recorded for items shipped FOB destination until those items reach the buyer.
Explanation:
In this scenario the buyer has not received the good so ownership has not transferred hands. According to shipping FOB terms, till the buyer actually recieves the goods they are technically still the property of FY world.
So Wally will not be able to record revenue against this sale. Rather he will still recognise the merchandise as part of the companie's inventory.
When the buyer recieves the goods he can now record the revenue from the sale.
Answer: In Favour of Ewing.
Explanation:
When Dean made that promise, he got into a contract with Ewing.
Now for a contract to be enforceable, 4 components must be satisfied. These components are, Agreement, Capacity (mental), Consideration and Legality.
From the above text we can tell that this is therefore a valid contract because both of them agreed to the proposal and were both of sound mind when they did. There was a Consideration ( the benefit in the contract) of $10 per pound and this contract is legally sound so this is a valid contract.
Ewing has fulfilled his side of the bargain and is entitled to his reward or payment.
Dean's claim that Ewing’s improved health is a sufficient benefit for his effort and sacrifice which indeed is a benefit, should not be considered sufficient because it was not agreed upon as a term in the contract.