13 Which of the following aremechanisms that help minimizeagency problems?1. monitoring by board of directors2. compensation tied to earnings andstock price3. transparent financial reporting4. the threat of takeovera. 1,2,3b.1,2,3,4c. 1,2d. 1 only

Agency problems occur due to the conflict between shareholders and management of a corporation. The…

Answered: Which of the following are mechanisms…

Foundations of Business (MindTap Course List)

6th Edition

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter15: Using Management And Accounting Information

Section: Chapter Questions

Problem 3DQ

See similar textbooks

Similar questions

3- Every investor expects some return on his/her investment. The benefit/return received by common stockholder on their investment in a company is called _____________. a. None of the options b. Dividend c. Coupon d. Preference dividend
Brief Exercises List the advantages and disadvantages of a corporation. BE11.1 (LO 1) K Angie Baden is studying for her accounting midterm examination. Identify for Angie the advantages and disadvantages of the corporate form of business organization. Journalize issuance of par value common stock.
44) Balance sheet includes ___________________ of the firm. a. Capital b. Liabilities c. Assets d. All the options
4. Thainess Co., a mid-size firm, has set up its ERM framework and wants to assess whether its ERM components are working properly. To do this, what are some of the ways to judge "effective" ERM? a. Use the corporate scorecard results as an indicator of the effectiveness of ERM b. Assess whether risks have been controlled across COSO ERM Framework components with reasonable assurance that risk management will allow the firm's objectives to be achieved c. Assess ERM effectiveness by using the results of the financial auditor's report d. Review the firm's operational objectives and determine if each of them has been met 6. What would be the appropriate consolidation of reports by CAE? a. Significant events should be reported immediately, periodic written reports should cover key risk indicators on a scheduled basis, and the ERM plan should be reported during periodic presentations b. Risk owners should report every risk event timely, and the CAE is responsible for ensuring…
3.Payback period method is one of the _________ in capital budgeting. a. Traditional b. Modern c. Mixed d. None of the options
Required: a. Prepare a multiple-step income statement for the year ended December 31, 20Y5, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were $100,000. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. “Less” or “ Add will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20Y5. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. If…
9 which of the following plans may be used by a sole proprietor only the employees of the business are included A individual retirement account (IRA) B simplified employee pension (SEP) C Tax sheltered annuity (TSA) D corporate pension plan
For each requirement, state how it is intended to help to address the risk of fraud in publicly traded organizations. a. Boards need to consist of at least 3 independent directors of 1/3 of the board which is higher. b. Boards need to hold regular executive sessions of independent directors without management present.
Y8 Select the true statement about Chapter 11 bankruptcy. a.) Under Chapter 11, a company is permanently dissolved. b.) Under Chapter 11, a company may be able to continue its operations, but with a potentially higher cost of capital. c.) Under Chapter 11, a company can reorganize without officially filing a bankruptcy petition. d.) Under Chapter 11, a company's creditors are paid with the proceeds of the sale of all of the company's assets.
The following data was gathered during one of the recent audits of Cash Disbursement Section. One of the findings was on the outdated Delegation of Authority to policy. In preparing a report of the findings, identify the elements of an audit findings for each data (in order). 1. The delegation authority is updated biannually and not when changes in personnel or responsibilities of authorized individuals occur. 2. The delegation of authority policy list three individuals who are no longer with the company. Additionally, four individuals were identified who are new in their positions that should have disbursement authority, but are not listed in the policy. 3. Disbursements may be made that are not in accordance with management's or BOD's direction. 4. Authority over the disbursement of funds should only be delegated to individuals whose responsibility justify such authority. O Cause, Effect, Condition, Criteria O Condition, Effect, Cause, Criteria O Cause, Condition, Effect,…
14/Which of the following are the tools of management accounting? i. Standard costing ii. Cash flow statement iii. Budgeting iv. Responsibility accounting a. i ,ii, iii & iv b. i, ii & iii c. i, ii & iv d. ii ,iii &iv
tion 2 The rules of risk management appear to be common sense. In view of this fact, how do you account for the widespread violation of these rules in insurance buying today? .Explain the relationship, if any, among the statements: "Don't risk more than you can afford to lose," "Those people who need insurance most are those who can least afford it," and "Insurance should be considered as a last resort." E. What are the implications of the observation that "the cause of a loss is less important than its effect?" In what way does the cost of risk influence the decision to transfer or retain a particular risk? ANT

SEE MORE QUESTIONS

Recommended textbooks for you

Foundations of Business (MindTap Course List)

Marketing

ISBN:

9781337386920

Author:

William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:

Cengage Learning

Foundations of Business (MindTap Course List)

Marketing

ISBN:

9781337386920

Author:

William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Which of the following are mechanisms that help minimize agency problems? 1. monitoring by board of directors 2. compensation tied to earnings and stock price 3. transparent financial reporting 4. the threat of takeover a. 1,2,3 b.1,2,3,4 c. 1,2 d. 1 only