Answer:
D
Explanation:
Agency conflicts arises when the objectives of managers isn't aligned with that of shareholders.
Due to the objective of maximising value for shareholders, managers might be induced to engage in aggressive accounting practices in order to present a higher profits than might actually exist. This practice is unethical. This places more emphasis on profits than cash flows.
Answer:
The Draper Corporation would be indifferent between continuing and discontinuing of Doombugs at 20,000 units.
Explanation:
The draper should be indifferent at the level at which they covered all of their Fixed Cost.
The sales price per unit is ⇒ 150,000/15,000 = 10 per unit
The Variable cost per unit is ⇒ 120,000/15,000 = 8 per unit
The Break-even units for Draper should be:
Break-even units = <u> Fixed Cost </u>
Sale price - Variable Cost
Break-even units = <u>40,000</u>
10-8
Break-even units = <u>40,000</u>
2
Break-even units = 20,000 units
Answer:
False, once an online catalog is in place, there is little cost in maintaining it
The balance of the price in the market is determined by demand and supply, which are measured in terms of the price and quantity variables; When a tax is placed on a product, a change in the market equilibrium is generated, since buyers pay more and sellers receive less.
Thus, a tax causes the supply curve to move up and the demand curve to move down.
In order to know how the tax burden is distributed, the incidence is measured through the elasticity of the supply and demand curve, which measures the sensitivity of the quantity, demanded or offered, of products before a price change.
When the supply curve is more elastic than the demand curve, the impact of the tax is stronger for consumers, as the prices paid by consumers increase more than the price that sellers receive decreases.
Answer
It can be concluded about the elasticity of demand and supply prices that <em>supply is more elastic than demand</em>
<span>You should make sure that everything on your side is in place to go against the new competition. You should be on the same page as your supplier to make sure your supplies are sent on time and complete. You should make sure your consumers are satisfied to prevent them from going to the new competition. Overall, your goal should be to maintain your consumers and suppliers.</span>
