From an investor perspective ESOPs are the most valuable if used to help prevent takeovers but are much less valuable if designed and used to help improve worker productivity. IS THE SATEMENT TRUE OR FALSE?

Q: A company believes that it is subject to scrutiny by particular interest groups such as employee…

A: Interest groups  promote their members' interests or concerns and  their primary functions is to…

Q: Is it feasible for a new company endeavor to be lucrative while also experiencing financial…

A: Introduction: According to Entrepreneur, it takes a minimum of three years for a company to become…

Q: What makes the cost-benefit analysis more difficult for information systems than most other…

A: Cost Benefit Analysis: Cost benefit analysis is conducted to determine whether the proposed system…

Q: Why is diversification considered “good” by most professionals? Can you think of a situation where…

A: Investment means engaging your funds to generate income for the future. Risk and return are two…

Q: Profit maximisation will lead to; a. Inequalities among the shareholders b. Corrupt practices…

A: TWo types of maximization are profit maximization and wealth maximization

Q: Many firms have devised defenses that make it more difficult or costly for other firms to take them…

A: Agency problems is a situation when one party acts like an agent for another party (principal) and…

Q: RUE or FALSE: Managers recognize that being socially responsible is not inconsistent with…

A: For a long time managers only focused on maximizing shareholder value through a relentless focus on…

Q: Question (B) In many firms, managers' compensation is based on measures of managerial effort,…

A: the first question is asked about the manager living or change in the management and how the…

Q: Which of the following statements is false with respect to replacement analysis? a. Functional…

A: Obsolescence is the risk that the product of a corporation will become obsolete and it will no…

Q: Why does the high cost of the system negatively impact the organization's bottom line?

A: The question is based on the concept of bottom line of a company and its relationship with high cost

Q: minimize overall risk

A: A manager has to make different decisions related to choosing a project.  A project giving a higher…

Q: Is it feasible for a new company endeavor to be lucrative while still experiencing financial…

A: Meaning of Lucrative Lucrative which simply describes as brings profitability into the business…

Q: Firms with higher ethical standards will experience a higher level of economic performance than…

A: Taking some moral principles into account as a guide for decision-making is what ethical behavior is…

Q: Which of the following is NOT one of the common exit barriers? Select one: O a. A high return unit…

A: The question is related multiple choice question and is related to reason not common  for exit…

Q: what does it mean to say that managers should maximize shareholders wealth subject to ethical…

A: Share- It is a unit of ownership in a company's capital. It entitles the shareholder to an equal…

Q: Are managers of firms with formidable takeover defenses more or less likely to act in the…

A: Just like other jobs, management jobs are also at risk in the event of takeovers. So, the answer…

Q: Explain how hazards will help reduce the impact of loss in a company?

A: Loss is referred to as the decrease in net income in an financial terms, which is outside the normal…

Q: Which of the following is a disadvantage of outsourcing? Group of answer choices A. freeing up…

A: A very common outsourcing scenario is the decision of a company to produce a component that is…

Q: Why should managers worry about product overcosting or undercosting?

A: A product is said to be over costing when it consumes low level of resources but is reported to have…

Q: A company believes that it is subject to scrutiny by particular interest groups such as employee…

A: Revenue recognition is an accounting theory that specifies the requirements that must be completed…

Q: how a firm might use a hedging to reduce risk in its business? please include examples

A: Hedging is an important tool in finance. A firm or a company often makes use of hedging to reduce…

Q: Which of the following statements is not correct about ESG? a.A mature ESG presence helps companies…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Do you think it is realistic for a smaller company to reach and enjoy this beneficial negative CCC?

A: CCC CCC stands for cash conversion cycle. It refers to the time taken in days by a business to…

Q: Regulators may impose political costs on firms. However, there are ways that some firms practice to…

A: During the past few years, it has been observed that the size of the company and the level of…

Q: If a firm applies the same discount rate to all projects for all of its divisions, the firm will…

A: Discounted method techniques are applied under capital budgeting in financial management. In…

Q: How can purchasing managers use their position to defraud the company? What can be done to prevent…

A: Purchasing Manager: The purchasing department is responsible to purchase the assets and hire the…

Q: Give an example of a leveraged company that might have a spectacular ROE because the owners have put…

A: A company's capital structure can be formed with shareholders' funds(equity) and outside…

Q: Do you think that the provisions of the new contract will increase morale and decrease turnover? Why…

A: A contract refers to an agreement enforceable by law. It is a legal agreement held between two or…

Q: A business that has a low operating leverage is considered normal for highly automated manufacturing…

A: Business is defined as any activity that assists in earning an income for the owner or the person…

Q: what if your company is being targeted by a SPAC would that be a good thing or a bad thing?  What…

A: Here discuss about the importance of the Special Purpose Acqusition company (SPAC) which are…

Q: Agency theory suggests that one way to motivate managers to act in the best interests of the…

A: Here discuss about the details of the agency theory which act against disputes and problems which…

Q: how do compensation plans, including bonus structures, drive behavior?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Examples of systematic risk include a new competitor in the marketplace with the potential to take…

A: Unsystematic Risk: Diversifiable Risk is another name for this type of risk, which is easier to…

Q: enture capitalists take an active role in ment of a company they finance, they alleviate the moral…

A: Venture capitalists who have capital and identity small companies who have high growth potential and…

Q: Why might a manager exhibit a behavioral tendency to inappropriately consider sunk costs in making a…

A: Sunk Costs: Sunk costs are those costs incurred in the past and it cannot be changed unless if any…

Q: Why might managers resist buying a more expensive piece of equipment, known to have a lower TCO,…

A: Managers resist purchasing an extra expensive part of equipment so as to evade high initial outlay.

Q: What are the disadvantages of outsourcing? (BUY)

A: Outsourcing: Outsourcing refers to hiring another company, to undertake a business process of the…

Q: Describe an adverse selection problem a company is facing. What is the source of the asymmetric…

A: When one party in a transaction has more or better information than another. Generally, this type of…

Q: What questions should managers answer when considering dropping a product or segment?

A: Drop or Keep Decision: When a product or segment of a business is costing more money than earning,…

Q: Where management's bonuses are tied to profit-based performance measures, management may have an…

A: Return on assets is a profit-based performance measure, when the value of assets increases the…

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.