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DerKrebs [107]
3 years ago
14

Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? Threat of a

takeover of the firm by unsatisfied stockholders Implementation of a stock option plan Salary raises based on length of service Management compensation tied to the market value of the firm's stock Threat of a proxy fight
Business
1 answer:
vovikov84 [41]3 years ago
7 0

Answer:

Salary raises based on length of service  

Explanation:

Agency conflict occur when the owners of a firm do not manage the company. Instead, the firm is managed by mangers. As a result, the interest of the manger might not be aligned with that of the owners and as a result the manager would not act in the best interest of the owners.

Agency problem is more common in public companies

If management compensation tied to the market value of the firm's stock, it would incentivise managers to take steps that would ensure that the value of the company's stock increases. This is because they would also benefit if the value of the stock increases

A stock option plan gives managers the option of buying a company's stock if certain targets are met. This would motivate an employee to work in the best interest of the shareholders

A proxy fight and a takeover would make the managers to lose their jobs. Most managers would not want to lose their jobs. A threat of a takeover or a proxy fight can serve to motivate mangers to act in the best interest of the stockholders

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Within the relevant range, variable costs can be expected to: Multiple Choice remain constant in total as the activity level cha
Rudiy27

Vary in total in direct proportion to changes in the activity level. As this cost increase or decrease, the output level.

<h3>What is the variable cost dependency?</h3>

Variable costs are proportional to output, resulting in a fixed sum per unit produced. It indicates that when more products are manufactured, variable costs will rise; conversely, if fewer products are manufactured, variable costs will fall.

Thus, option C is correct.

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8 0
2 years ago
The three major economic impacts of tourism are. a.Cultural facilities, infrastructure, and employment b.Employment, income, and
Mekhanik [1.2K]

Answer:

a.Cultural facilities, infrastructure, and employment

Explanation:

4 0
3 years ago
Read 2 more answers
What’s the answer .......
ohaa [14]

If i am correct it is A. Yep, I googled it

4 0
3 years ago
Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. Th
netineya [11]

Answer:

A) 100

Explanation:

total sales 3,600 units

cost per unit $200

cost of placing order $40

holding cost $20 per year

working days 360 per year

lead time 5 days

If Mark orders 200 units each time, his average inventory ?

daily sales = total sales / working days = 3,600 / 360 = 10 units per day

number of orders per year = 3,600 / 200 = 18

Mark places one order every = 360 days / 18 orders = 20 days

average inventory = (200 units / 20 days) x 10 days = 100

I assume that mark has some type of safety stock that allows him to hold enough inventory to cover for the 5 day lead time.

8 0
3 years ago
Most of the assets were bought a long
Margarita [4]

Answer:

Historical cost principle

Explanation:

Assets must be recorded at cost value, not market value. When you record an asset, you cannot change its value every period, you have to keep using the historical value. This is why we use a separate account to record accumulated depreciation of assets, so that the purchase cost is always constant, but the net carrying value will vary depending on depreciation expense.

Market value changes and can be very volatile. Imagine a house, whose initial value was $300,000, then it increased to $500,000 but the market went down and its value was $350,000. It would be a mess to change the value and pay capital gains taxes, or then report a loss.

4 0
3 years ago
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