Describe the perspective of stockholders on compensation.
What will be an ideal response?
Stockholders are interested in how employees are paid. Some believe that using stock to pay employees creates a sense of ownership that improves performance and increases stockholder wealth. However, others argue that granting employees too much ownership dilutes stockholder wealth.
Stockholders have a particular interest in executive pay. The interests of executives are aligned with those of shareholders who hope that company performance will be higher.
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When two proprietors decide to combine their businesses, generally accepted accounting principles usually require that noncash assets be taken over at their
a. historical cost value as of the date of formation; b. fair market value as of the date of formation; c. book value as of the date of formation; d. residual value as of the date of formation; e. salvage value
Narrative 14-1For problems in this section, use Table 14-1 from your text to find the monthly mortgage payments, when necessary. Suppose you earn a gross income of $2,730 per month and apply for a mortgage with a monthly PITI of $510.51. You have other financial obligations totaling $431.34 per month. (Use the ratio guidelines from your text) What type of mortgage, if any, would you qualify for?
A. FHA only B. FHA and Conventional C. Conventional only D. None
In which pricing technique does a retailer advertise and sell key items in the product assortment at less than their usual profit margins?
a. odd pricing b. price lining c. bait-and-switch advertising d. leader pricing
When Samsung promotes the benefits and strengths of its Samsung brand appliances, it is attempting to build
A. primary demand. B. new introductory promotion. C. prospects. D. brand awareness. E. selective demand.