It is true that Costs, also called differential costs, are the additional costs from selecting a certain course of action.
<h3>What is
differential costs?</h3>
Differential cost serves as the difference between the cost of alternative decisions.
Therefore, It is true that Costs, also called differential costs, are the additional costs from selecting a certain course of action and the cost do take place when a business have several similar options,
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Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. She might want to open a bed and breakfast. If Cynthia enjoys working with others in the lodging industry, but on a smaller scale, a bed and breakfast is the perfect place for Cynthia to open that stays with her love for lodging but without the large hotel chain group of people. A bed a breakfast is usually a smaller place with roughly 10 rooms to rent out as if you were staying in a hotel.
Answer:
False
Explanation:
Agency cost is a term used in Administration to describe a special type of expense that arises from conflicts of interest existing in an organization.Within the context of financial management, the main agency conflicts are:
-Between shareholders and managers :Theory of the principal — agent or the problem of the principal — agent is a theoretical model of economics designed to understand management situations between unequal actors having different degrees of awareness (asymmetric information): the person giving the order (principal) is usually located in the highest hierarchical position and awaits the solution of the task in his interests; on the other hand, the person executing the order (agent: manager or economic agent) is in the lower hierarchical position, but has more information than the principal and can use this information either in the interests of the principal or in his own interests. To solve this problem, various strategies are proposed, such as trusting relationships, general information systems, or focused incentives.
In general, to alleviate agency conflicts, shareholders bear the agency cost, which includes all the relative costs to make the interests of the managers aim to meet their own interests, which is to maximize the share price from the company. However sometimes the shareholders may want management to run the company in a fashion which increases shareholder value.
- Among shareholders and creditors.
Answer:
c. Not-for-profit organizations need to make money to continue operating.
Explanation:
Non-profit organisations mainly focus on meeting their set objectives for example ensuring education is provided to poor children, health services reach the less privileged in society, and so on.
On the other hand for profit organisations mainly focus on turning a profit for the benefit of the business owners.
The manager for a non-profit organization will be as concerned with his or her organization's financial well-being as the for profit manager.
This is because non- profit organisations tend to have a tight budget and they will need to effectively manage resources available to them to ensure they keep functioning.
Answer:
I believe it's a market economy.
Explanation:
