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mrs_skeptik [129]
2 years ago
8

Which one of the following actions by a financial manager is most apt to create an agency problem? Increasing current profits wh

en doing so lowers the value of the company's equity Refusing to expand the company if doing so will lower the value of the equity Refusing to lower selling prices if doing so will reduce the net profits Agreeing to pay bonuses based on the market value of the company's stock rather than on its level of sales Refusing to borrow money when doing so will create losses for the firm
Business
1 answer:
MrRissso [65]2 years ago
6 0

Answer: Increasing current profits when doing so lowers the value of the company's equity.

Explanation:

The main purpose of a company is to increase the wealth of shareholders. In their capacity as stewards for the company, managers should be working therefore to achieve this goal.

When management neglects this goal and begins to seek an improvement in their welfare and wealth instead of the shareholder', this is an Agency problem.

If a Financial manager is increasing current profits even though doing so will lower the value of the company's equity, this can create an agency problem because the shareholders are suffering but the finance manager might get rewarded for increasing profits.

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For large projects that involve several hundred people performing various activities over several years, it is practical to have
lesantik [10]

Answer: False

Explanation:

It is very Impractical to have each person in such a project estimate activity durations at the beginning of the project.

Firstly there are several hundred people involved and it is a very large project, each and every person cannot begin to guess how long activities will take because the plans will have to fit into the next person's plans. It is impractical.

Also, it is a Long Term Project where people will perform different roles over those years. It is impractical for each person to estimate how long their activities will take to complete again because such plans would have to be interwoven with the next person's.

6 0
2 years ago
Use the Washington Post article Why We've Been Hugely Underestimating the Overfishing of the Oceans to answer the question. Whic
xenn [34]

Answer & Explanation:

Fish is a common resource not a public good because it is subject to rivalry in consumption.Tragedy of commons results when property right aren't assigned for the common resource.

4 0
2 years ago
One learning aid provides an interactive​ walk-through for solving the particular problem you are working on. you are prompted w
Lilit [14]

Answer : View an example.

Explanation : In the described learning aid steps which provides an interactive walk through for solving a particular problem that one is working on. By answering few questions to teach you the steps on how to reach to the final answer it is allowing you to solve a similar problem. So, the correct option is View an example.

8 0
2 years ago
Drag each event to the correct location on the chart.
saul85 [17]

Answer

Increase- a popular new diet prescribes

only olive oil for weight loss

Increase- a report in news stating that

consumption of olive oil

improves health

Decrease- a decrease in the price

of other vegetable oil

Decrease- research shows that olive oil

consumption leads to hair loss

Explanation:

4 0
2 years ago
The invoice should be sent to Ventura Communications 58 Jackrabbit Avenue Suite 10 Phoenix AZ 85745 no later than March 4 2008.
Marina CMI [18]

Answer: B. The invoice should be sent to Ventura Communications, 58 Jackrabbit Avenue, Suite 10, Phoenix, AZ 85745, no later than March 4, 2008

Explanation:

Option B is correct because it was punctuated properly.

When writing an address, the distinct parts should have a comma after them to distinguish them. The name of the Addressee should have a comma after it, the physical address as well, and the town/ city.

The state abbreviation and the zip code need no comma between them neither do the month and the day in the date.

If you need any more information, do comment. Cheers.

3 0
2 years ago
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