Answer: The correct answer is "C. agency problem".
Explanation: The agency problem is defined as a conflict of interest between the corporate shareholders and the corporate managers.
Agency theory is a business technique whereby shareholders (the principal) ask another person (the agent or manager) to perform a certain job on their behalf. For an agency relationship to exist, the agent must be authorized by the principal to sign, modify or cancel contracts with third parties on behalf of the principal.
The agency problem basically consists in solving how the principal can ensure that the agent performs the action optimally for his (principal's) interests, and not his own.
C. Is the answer because the bussiness will not go down if it has an insurance company that will serve as a defense
Answer:
Etcetera Clothing collected $10,780
Explanation:
Etcetera Clothing sells merchandise inventory on terms of 2/10, n/30, which means that it will give a cash discount to a customer of 2% when the payment is made within 10 days and the whole settlement of account must be made in 30 days.
If the customer paid for the merchandise 5 days after receiving the invoice, the customer was granted the cash discount since the payment is still within the discount period.
The amount of cash discount is $11,000 × 2% = $220
Payment made to Etcetera Clothing will be $11,000 - $220 = $10,780
Answer:
Price increase is about 4.2%
Explanation:
Price Elasticity of Supply (PES) is a measure of the responsiveness of the quantity of a particular good/service supplied to a change in price.
The price elasticity of supply is mathematically the ratio of the percentage change in quantity supplied to the percentage change in price.
Answer:
The statement is: False.
Explanation:
The North American Free Trade Agreement (<em>NAFTA</em>) is a treaty signed by Canada, Mexico, and the United States to create a free-trade area between those regions. Besides eliminating tariffs on imports and exports between the three countries, thanks to the NAFTA procedures to resolve trade disputes can be established. Also, according to the NAFTA, the three countries must respect the patents trademarks and copyrights of each of them.
Brazil does not belong to this bloc.
