The introduction of intermediaries helps in minimizing the asymmetric information gap by becoming experts.
<h3>What is information asymmetry?</h3>
Information Asymmetry deals with the study of decisions in transactions where one party has more or better information.
The financial intermediary establishes trust by providing a form of guarantee of investment performance to the buyer of securities and a fair price to the sellers of securities.
Learn more about Information asymmetry here:
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Horizontally organised companies do not have a strict hierarchy of posts with increasing importance and allow more freedom to the employees.
Explanation:
Horizontally organised companies function very differently from traditional companies as the traditional structure is a pyramidal vertical structure.
<u>In this structure people at the top are few and are at higher positions and issue orders which are distributed by managers to employees.</u>
<u>In the horizontal structure the managers are taken out of play and even the employees make important decisions for the company.</u> This allows for greater morale and freedom but can only work for small and medium sized businesses in certain niches.
Answer:
Cost of goods sold= $816
Explanation:
Giving the following information:
Acme-Jones Corporation uses a weighted-average perpetual inventory system.
August 2: 24 units were purchased at $23 per unit.
August 18: 40 units were purchased at $25 per unit.
On August 29: 34 units were sold.
Weighted-average= (23 + 25)/2= $24
Cost of goods sold= 34*24= $816
