Answer:
A) Information asymmetry.
Explanation:
An information asymmetry can be defined as a situation where there is an imbalance of information between two parties in their knowledge of important points, factors and details. Thus, because one party has more information or knowledge than the other, this usually results in an inefficient outcome and or failure.
The theory of information asymmetry was developed and introduced by three (3) notable Nobel prize winning economists, namely; Michael Spence, George Akerlof and Joseph Stiglitz.
In this scenario, Matthew a divisional manager at Venus Inc. reports to the CEO of the company. Matthew has more employees working for him than required and he has not told the CEO about this, even though there are other departments that are in need of more employees.
<em>Hence, the concept illustrated here is an information asymmetry.</em>
Answer:
$875
Explanation:
Generally, the relationship can be expressed as interest rate = Coupon Payment / Face Value.
Initially a 7% market rate a investor gets 7% which gives a coupon payment of $70 because the face value of 1000.
Hence 70/1000 = 7%
Subsequently with the interest rate change, we can look for the bond price.
Substitute 8% for the interest rate and find the revised bond value which will fall as rate increases
$70/bond price = 8%
Then $70/ bond price = 0.08
0.08 x bond price = $70
bond price = $70 / 0.08 = $875
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Variable manufacturing cost, $30
Applied fixed manufacturing overhead, $15
<u>Under the absorption costing method, the unitary product cost is calculated using the variable manufacturing cost and allocated fixed overhead.</u>
Unitary product cost= 30 + 15= $45
Answer: A. Fewer new businesses were started in 2010 than in other years
Explanation:
Answer:
The correct answer is letter "C": weekly shift assignments at a retail store.
Explanation:
Business Forecasting refers to the estimates companies make to have an idea of what their performances will be in the short and long run. <em>In the short-run, companies forecast mostly activities to organize the number of resources available for the day-to-day activities</em>. Long-term forecasts are those that estimate what course the firm will take including what will the organization offer and where.
Thus, <em>weekly shift assignments at a retail store are an example of short-range forecasts.</em>