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What else can I help you with?
The potential conflict of interest between a firms owners and its managers is referred to as what?
agency
Why do firms invest and borrow?
Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses.Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
Which financial ratio is the best measure of the operating effectiveness of a firms management?
current ratio
What types of firms or what industry sectors might it be prudent to limit operating leverage?
susmita
Firms with relatively high nonfinancial fixed costs are said to have a high degree of what?
Operating Level.
Why do managers split their firms stock?
To raise money.
If a firms fixed financial costs decrease the firms operating breakeven point will do what?
decrease <--------WRONG!!!!! The operating breakeven point will remain unchanged.
What is horizontal and covers similar types of firms and operating practices of the firms?
industry analysis
Is the importance of financial managers to firms with large cash inflows greater than for firms with smaller cash flows?
true
What assumptions do owners of modern firms make about managers as agents?
hgh
The potential conflict of interest between a firms owners and its managers is referred to as what?
agency
Why firms invest and borrow?
Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses. Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
Efficiency wage model firms tend to pay workers?
no.
How can managers protect the proprietary technology of their firms?
Managers can protect the proprietary technology of their firms by being vigilant. Make sure everything is locked up tight, make sure the employees are trustworthy, and make sure computers are secure and virus free.
Outline the cost and efficiency disadvantages often exprieced by small firms?
The cost and efficiency disadvantages experienced by small firms include inability to buy commodities in large quantities which translates to higher costs.
Why do firms invest and borrow?
Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses.Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
Which financial ratio is the best measure of the operating effectiveness of a firms management?
current ratio
