Answer:
Explanation:
Profit maximization objective can easily be manipulated and it is highly subjective. Management may decide to avoid some costs in the short-term such as Investment in Assets, Investment in R &D and other discretionary cost in order to have an impressive profit performance. In the long-run, the avoidance of this cost now may reduce the earnings capacity of the company assets.
Using profit as measure of performance for manager may encourages dysfunctional behavior.
In the true sense, profit generation may not translate into increase in the value of the company . For example, management may decide to reduce depreciation charge, decide to over state revenue or over valued inventory
On other hand, maximizing shareholder value is a long-term and sustainable objective that involved investing in viable projects with positive net present value to enhance the value of the company.
When this is used as a performance measure , it very difficult to manipulate in the short-term.
Answer: d. under the minimum-contacts test.
Explanation:
Cattle House Steaks, a Colorado company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, a Colorado court can exercise jurisdiction over Beef Packing under the minimum-contacts test.
Minimum contacts applies to situations whereby a court in one state can assert its personal jurisdiction over another defendant which isn't in that same state but is in another state.
Answer: Measurement and presentation of financial performance
Explanation: The two primary functions of financial accounting are measurement and presentation of financial performance.
The measurement function is performed by following accounting procedures and policies under US GAAP and IFRS.
Whereas, presentation function relates to preparation of financial statements like income statement and cash flow statement.
Answer: Share
Explanation:
According to the given scenario, the berry hill is one of the type of insurance company that basically decided to sharing the risk for paying the flood claims by increase the rate of of the insurance in the southern state.
The various types of companies or insurance based organization are effectively determining their risk by calculating the actual premium rate of the policy holder partner.
The risk sharing is one of the process in which the both the factor such as profit or loss are get share between the partners or any policy holder member in the company on the basis of the pre-determine formula.
Therefore, Share is the correct answer.
Answer: d. Inefficiently high quality of the good being sold.
Explanation: a binding price ceiling is the legal maximum that is imposed on a good when the market clearing price is above the ceiling price. This leads to a shortage of goods in the market. Since consumers do not get all they want the ongoing price, it leads to wasted time of the consumers looking for the good, inefficiently low transaction cost and inefficient allocation of goods to the consumers.
However, it does not lead to inefficiently high quality of the good being sold. As quality of good is not linked to the price ceiling.
