Answera dnd Explanation:
A. The incentive conflict in principal-agent relationship as it concerns venture capitalism is conflict between venture capitalists who are the principals and the managers of the business investment who are the agents. The conflict is that venture capitalists are put to increase value of their investment and make profit while salaried managers are only out to feel their pockets through their managerial role in the company as they do not have an interest in the company and are unaffected by the loss or failure of the company. This is known as the principal agent moral hazard issue in venture capitalism
B. By managers maintaining some ownership in the company, there us reduced conflict as managers now see a reason to make sure company succeeds since they have an interest
Venture capitalists aim to have a seat in the board to make sure managers do not take bad decisions since they are able to veto such decisions
Given:
ΔY = $5,000, the change in income
ΔS = 50,000 - 54,000 = - 4,000, the change in savings.
By definition,
MPS (Marginal Propensity to Spend) is
MPS = ΔS/ΔY = -4000/5000 = -0.8
The relation between MPS and MPC (Marginal Propensity to Consume) is
MPS + MPC = 1.
Therefore
MPC - 0.8 = 1
MPC = 1.8
Answer:
MPS = 0.8
MPC = 1.8
B. False. More real-world, relevant and important ideas to keep in mind when shopping for shoes and clothes are the associated quality of the manufacturer, which could be a brand name. Also, of utmost importance is the overall quality of the product with relation to its cost. The size of the item is also important. Do not buy an overpriced item, that does not fit properly and is made of cheap materials that quickly break.
Answer:
The journal entry to record the sale :
Debit : Note Receivable $120000
Credit : Sales Revenue $120000
Explanation:
The journal entry to record the sale includes a Debit entry of a Note Receivable at the amount owed by the customer since there was no immediate payment of cash and a Credit entry of Sales Revenue to recognize Income earned.
Answer:
the gift shop must recognize 31 days of accrued interest payable, total interest = principal x interest rate x time passed
= $50,000 x 12% x 31/365 days = $509.59
the adjusting entry should be:
December 31, accrued interest on note payable
Dr Interest expense 509.59
Cr Interest payable 509.59
