answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mashcka [7]
2 years ago
7

The manager of your company's pension fund is compensated based entirely on fund performance; he earned over $1.2 million last y

ear. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at $100,000. Provide an argument against the proposal.
Business
1 answer:
Anon25 [30]2 years ago
8 0

Answer:

The compensation to the fund manager is based on the performance of the pension fund. If the fund performs well and earns significant profit, then the compensation to the mangers should increase.  

If it incurs losses, then the argument for capping the compensation of funds managers will gain ground. Note that the manager is being paid according to the pay-for-performance scheme. Thus it is unjustified that his compensation is reduced when there is no significant evidence that his performance was responsible for the poor performance of the fund. The manager has earned over $1.2 million last year. Hence fixing the compensation of managers to $100,000 should be considered only when the fund has under performed drastically. Without such evidence, such capping will only demoralize them and the profitability of the company will fall.

Explanation:

You might be interested in
A regional airline owns 10 aircraft and employs 20 pilots. The airline makes an average of three trips per day with each of its
marishachu [46]

Answer:

a short-run decision because the number of aircraft is held constant while the labor input is changed.

Explanation:

In the short run, at least one variable or factor of production is fixed and cannot be changed. In the long run, all factors of production can be changed.

In this case, the number of aircraft is the fixed factor of production (capital) while labor is variable because more pilots can be hired. Regulation state that pilots must rest a certain amount of time in between flights, so if you want to increase the amount of flights you need to hire more pilots and cabin crews since regulations do not require planes to rest.

6 0
2 years ago
Thayer Farms stock has a beta of 1.38. The risk-free rate of return is 3.87 percent, the inflation rate is 3.93 percent, and the
meriva

Answer: 16.33%

Explanation:

With the details given, the best method of Calculating the expected rate of return is the Capital Asset Pricing Model (CAPM).

The formula is,

Er = Rf + b(Rm - Rf)

Where,

Er is expected return

Rf is the risk free rate

b is beta

Rm - Rf is the Market Premium

Er = 3.87% + 1.38(9.03)

= 3.87% + 12.4614%

= 16.33%

The model accounts for inflation by including the risk free rate which is already adjusted for inflation.

8 0
2 years ago
One of the steps the U.S. Sentencing Commission delineated companies must implement to demonstrate due diligence is that a firm
Alchen [17]

Answer:

The correct answer is number (1): True.

Explanation:

Due diligence refers to the exercise an individual is subject to after entering a contract with another party by which a certain standard of care is expected from the individual.  

The United States Sentencing Commission is the governmental agency in charge of reviewing sentences discrepancies and promoting fair sentencing.

<em>In front of ethical issues within a firm, the U.S. Sentencing Commission states that the company must have disseminated a code of conduct so that the filing company can allege a violation of the due diligence employees are subject to.</em>

8 0
2 years ago
Explain how workplace safety is guaranteed by the roles of the government, the employer, and the employee
GuDViN [60]

<u>Explanation:</u>

Workplace safety is the responsibility of the employer to provide a safe place to work for the employees. According to Occupational Safety and Health administration it is necessary to follow certain job safety standards by the employer. The employer has to give safety awareness to the  employees. Employees can utilize the safety empowerment and report to management if there are any safety issues.

The government's responsibility is to set standards for the business enterprises to maintain their workplace safety. The government collects fines if anything is beyond the safety regulations or improper standards of organisations.

7 0
2 years ago
Read 2 more answers
Maude walks in early one day and catches her employer breaking the law. She complains to her employer that this is wrong and tha
ra1l [238]

Answer: a) Maude likely can successfully sue her employer for violation of a Whistleblower Protection Law.

Explanation:

Whistleblowers are people who call attention to illegal activities in their workplace which means that Maude qualifies as one.

In order to encourage people to speak out and call attention to illegal activities in the workplace, there are several laws at both Federal and State level that are aimed at protecting employees should they report said illegal activities.

This is why it is likely that Maude can sue her employer for violation of such laws but she must do so speedily to ensure that she can be helped as some of these laws tend to be limited.

8 0
2 years ago
Other questions:
  • Healthy Foods Inc. sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $90,000, w
    12·1 answer
  • During the months of January and February, Solitare Corporation sold goods to two customers. The sequence of events was as follo
    7·1 answer
  • Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $29
    10·1 answer
  • Josey Doakes was reading the balance sheet of Gogoldze Inc. when she spilled grape juice on it. After the juice spill, the balan
    12·1 answer
  • Millcorp sells wetsuits for deep sea divers. It recently engineered a new material for its wetsuits to better hold in the wearer
    5·2 answers
  • Bassett Fruit Farm expects its EBIT to be $377,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.3 p
    10·1 answer
  • Sunland Company purchased $1200000 of 11% bonds of Scott Company on January 1, 2021, paying $1122375. The bonds mature January 1
    13·1 answer
  • A hedge fund with net asset value of $71 per share currently has a high water mark of $78. Suppose it is January 1, the standard
    7·1 answer
  • Products should be specified by brand because: a. price levels of brand items are low b. the number of potential suppliers is re
    14·1 answer
  • Calvin works in the accounting department for a textbook publishing firm preparing budgets and reporting production costs. What
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!