Answer:
Principal-agent relationship
Explanation:
The principal Agent relationship is where a person or group of persons duly authorizes another to act on their behalf. Usually, the principal has more authority or is more senior and instructs the agent to represent them in certain aspects. The principle Agency relationship empowers the agent to act on behalf of the principal.
Lisa and the shareholders are a good example of a principal-agent relationship. Lisa, the CEO, should act in the best interests of the shareholder. Here, Linda is the agent who has been authorized to act on behalf of the shareholders, the principal.
<span>As Sarah is young, increasing her calcium intake at a younger age can help with bone density at a later age. This can help ward off osteoporosis and other bone-related diseases that can be caused by a lack of sufficient nutrient intake. In addition, the increased soda consumption, even as a diet alternative, lead to negative health effects because of the ingredients in the soda and the lack of nutritional value in the carbonated drink.</span>
Answer:
The following entries would be made.
Stefan Ceramics
Sr. No Particulars Debit credit
1 Merchandise Inventory 291600
Accounts Payable/ Cash 291600
For purchase of 720 kgs of tungsten carbide at $280 per kg (720*280=291600)
Accounts Payable or cash depending on whether material was purchased for cash or through accounts payable( creditors).
2 Work In Process 291600 Dr
Merchandise Inventory 291600 Cr
For use of 720 kgs of tungsten carbide . As there is no ending inventory the whole of the material is charged to production.
Answer: The advantage of the basic earning power ratio (BEP) over the return on total assets for judging a company's operating efficiency is that the BEP does not reflect the effects of debt and taxes
Explanation:
a. This is correct.
The advantage of basic earning power ratio over the return on the total assets for judging a firm's operating efficiency is that the basic earning power does not reflect effects of debt and taxes.
b. This is incorrect.
Only the price/earnings ratio of the company will tell us nothing about a company. When we compare the price/earnings of a company with the peers, we would know whether such company is under valued, or over valued or maybe fairly valued.
c. This is incorrect.
The total assets is made up of total liabilities plus the shareholders equity, when other things are held constant, less debt simply means less liabilities. To balance both sides, the total assets should reduce as the shareholder's equity is constant. When total assets decreases, the return on the assets will increase.
d. This is incorrect.
We can reach a conclusion on which firm is better managed based on the facts given. The debt ratio is the total liabilities divided by total assets, and a lower ratio is known to be good in comparison to a higher ratio. Similarly, the profit margin is the profit divided by the sales, and low profit margin shows high expenses and also a need for the management to decrease the expense.
Answer: Yes it was a reasonable response to the change.
Explanation: It was a reasonable response to the change because there was surprise and fear of the unknown.
