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torisob [31]
3 years ago
12

Why are conflicts of interests a problem in business?

Business
1 answer:
zmey [24]3 years ago
5 0
Let's say you're an investor. You've invested in a company that sells bagels and you obviously want them to succeed. If you were to invest in another company that sells bagels, both of your companies would depend on the same customer base as both are selling bagels. If you help one company more, then that one will be more likely to succeed and vice versa. This is the main reason why there is a conflict of interests.
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Suppose the current level of output is 5000. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, re
Tamiku [17]

Answer:

5575

Explanation:

The computation is shown below;

<u>Factor      Elasticity          Increase        Effective Increase </u>

                      A                        B      A × B

Capital      0.3                                 10%      3.00%

Labor        0.7                                  5%       3.50%

Increase due to Productivity                      5.00%

Total Increase in Output                             11.50%

(3% + 3.5% + 5%)  

Original Output                                              5000

Increase in Output (5000 × 11.5%)                 575

Increase Output (5000 + 575)                      5575

3 0
3 years ago
Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $180,000 of direct materi
Strike441 [17]

Answer:

The correct answer is $540,000

good luck

3 0
3 years ago
Popson Inc. incurred a material loss that was unusual in character. This loss should be reported as:
lawyer [7]

Popson Inc. incurred a material loss that was unusual in character. This loss should be reported as: a line item within income from continuing operations.

<h3><u>Explanation:</u></h3>

Any income or loss that was incurred during the continuous operations of any segment of business or in the continuous operations of any segment of business will be either represented as after tax gain or loss on selling the business segment and the after tax effect of the operations of the discontinued business segment.

The areas such as expenses, revenues, loss and gain and those excluding the   operation discontinued and extra ordinary items will included as the income from continuing operations.In the example given, the company has material loss during its operations and hen it should be reported as a line item within income from continuing operations.

4 0
3 years ago
An online investment blogger advises investing in mutual funds that have performed badly the past year because 'regression to th
Kipish [7]

Answer:

The correct answer is: No, he is not correct.

Explanation:

Regression to the mean is a statistical phrase that tries to explains that is something happened at the first attempt, it is likely to happen again at a second attempt and if it happens at the second attempt it is because it almost happened at the first attempt.

Then, following the concept of regression to the mean,<em> if a mutual fund performed badly on the last period, it is likely to perform even worse in the current period</em>. Thus, the online investment blogger is wrong.

7 0
3 years ago
The use of slang creates which type of communication barrier ?
Feliz [49]
Some sort of translation error? Most slang language is unable to be translated
3 0
3 years ago
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