Answer:
C. projected increasing health care costs for the aging population.
Explanation:
If the debt to GDP ration increases, it means that the country will owe more money compared to capacity of creating wealth. A common problem for several developed countries is that the proportion or retired people has increased compared to the total active labor force. This means that the number of people working or searching of jobs relative to the number of retired people has decreased. Even though retired people tend to have more accumulated wealth, their living expenses are also much higher. What makes this situation a problem is that retired people only have passive income, they do not have earned income. And generally speaking, passive income grows at a much lower rate that earned income.
This is why many developed countries started to implement immigration policies focusing on highly trained and educated applicants that can replace their native workforce.
Answer:
Management of a company is responsible for integrity and objectivity of financial statements. It is management's responsibility to comply with all applicable accounting standards while preparing financial statements.
Explanation:
There should be strict internal controls in a company. A company management is responsible to comply with all laws, and prepare financial standards free from errors. There should be no window dressing and information presented should be reliable. A company management is also responsible to maintain effective internal control system.
Answer:
a. 6.7%
b. 12.0%
Explanation:
a. DDM
Dividende Discount Method is used to calculate the price of the stock using Dividend, rate of return and growth rate.
Return on equity = [ Dividend x ( 1 + growth rate ) / Price of stock ] + Growth Rate
Return on equity = [ $0.5 x ( 1 + 6% ) / $76 ] + 6%
Return on equity = [ $0.5 x ( 1.06 ) / $76 ] + 0.06
Return on equity = 6.7%
b. SML
Security Market line method uses calculates the cost of capital using following formula
Re = R
f + β ( Rm − R
f )
Rf = Risk free rate
β = stock beta
Rm = Market rate
Re =Expected rate
Re = 5.9% + 1.20 ( 11% - 5.9% )
Re = 12.02%
Since the store is already close-- there's no point of having the employee to come in because as a security guard, it is best to protect the store and having to protect it in a way that a person shouldn't be let in when it is already closed even if the person looks like someone who is working in the store. If the employee has some excuses as to why he or she wants to come in, it best to respond in a way that he or she should come back when the store opens or during his or her shift.
Answer:
Fiedler's theory and others like it are called contingency theories, and they imply that the most effective management technique gets adjusted to every situation, focusing on tasks as subunits strategy, as a contingency factor is unexpected.
Explanation:
A contingency theory is an organizational theory of the unexpected, out of control factors, so there is not a best way to lead or to make decisions, there is, instead, a contingency that cannot be accurately predicted, being motivation and leadership, two of many independent variables of the contingency theory, and productivity, turnover and absenteeism are some dependent variables, allowing managers to bend policies or override the if necessary when reacting to problems, and wide discretion in decision-making as the theory´s basis states that leader's relations impact their effectiveness.
