Answer:
a. reserve requirements, the discount rate, and open-market operations.
Explanation:
Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.
Additionally, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).
The three (3) primary policy tools available to the governmental officials in charge of our country's monetary policy are reserve requirements, the discount rate, and open-market operations.
Answer:
a. reserve requirements, the discount rate, and open-market operations.
Explanation:
The three primary policy tools available to those officials in charge of our country's monetary policy are reserve requirements, the discount rate, and open-market operations.
Economic fine-tuning is the (usually frequent) use of Group of answer choices fiscal policy that both balances the budget and counteracts even small undesirable movements in economic activity. monetary and fiscal policies to counteract even small undesirable movements in economic activity. only fiscal policy to counteract even small undesirable movements in economic activity. monetary policy that is based on a predetermined steady growth rate in the money supply to counteract even small undesirable movements in economic activity.
Answer:
monetary and fiscal policies to counteract even small undesirable movements in economic activity.
Explanation:
Economic fine-tuning is the (usually frequent) use of monetary and fiscal policies to counteract or subvert even small undesirable movements in economic activity.
Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.
On the other hand, Fiscal policy refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.
Data from Estrin Corporation's most recent balance sheet and income statement appear below: This Year Last Year Accounts receivable $ 109,000 $ 106,000 Inventory $ 139,000 $ 158,000 Sales on account $ 787,000 Cost of goods sold $ 501,000 The average sale period for this year is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice 45 days 50 days 101 days 108 days
Answer:
d. 108 days
Explanation:
Average Inventory = (Beginning balance + Ending balance) / 2
Average Inventory = ($139,000 + $158,000) / 2
Average Inventory = $297,000 / 2
Average Inventory = $148,500
Inventory Turnover ratio = Cost of goods sold / Average Inventory
Inventory Turnover ratio = $501,000 / $148,500
Inventory Turnover ratio = 3.37 times
Average days to sell inventory = Days in a year / Inventory Turnover ratio
Average days to sell inventory = 365 days / 3.37 times
Average days to sell inventory = 108.31 days
Ilus
What are the gross sales?
Income Statement
For the Year Ended August 31, 2012
Revenues
Student Lessons
$29,520.00
Recital Sales
15,900.00
Total Revenues:
45,420.00
Expenses
Costumes and Accessories
Building Maintenance
Total Expenses:
16,700.00
11,320.00
28,020.00
*Call numbers in 000s)
The gross sales are the total amount of revenue earned before deducting any expenses. In this case, the gross sales are $45,420.00, which is the total of the revenues earned from student lessons and recital sales.
Gross sales are the total amount of revenue generated from the sale of goods or services before any deductions are made for discounts, returns, or allowances. It represents the overall performance of a business and is an important metric for measuring growth and profitability. Gross sales are usually reported on the income statement, along with the cost of goods sold and other expenses, to calculate net income or loss.
Therefore, the gross sales are $45,420.00, which is the total of the revenues earned from student lessons and recital sales.
Learn more about gross sales, here:
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If the firm finances investment spending out of retained earnings, then the interest rate is: Please choose the correct answer from the following choices, and then select the submit answer button. Answer choices the equivalent of income plus transfers minus taxes. the ratio of the total change in real gross domestic product (GDP) caused by an autonomous change in aggregate spending to the size of that autonomous change. the opportunity cost of using those funds for a particular investment project. irrelevant.
Answer: the opportunity cost of using those funds for a particular investment project.
Explanation:
Financing investment from the retained earnings of a company might seem like a costless method of sourcing funds but there is a cost that needs to be accounted for. This is the opportunity cost of not using those retained earnings for something else.
For instance, if Parrain Inc. decided to expand using retained earnings when they could have invested in a project that gave a return of 12% per year, the interest rate for the expansion is that 12% they could have earned from the other project.
A person performs a cost-benefit analysis in order to:
A. calculate the expenses of multiple businesses competing in the
same market.
B. evaluate the possible positive and negative effects of different
economic decisions.
C. analyze economic data to reach general conclusions about a
country's economy.
D. determine the tax rates a business will pay depending on its
profits in a year.
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Answer:
B. evaluate the possible positive and negative effects of different economic decisions.
Explanation:
Cost-benefit analysis (CBA) is used to examine and compare the cost associated with a project or task and the benefits derived from it.
Simply stated, cost-benefit analysis is a form of utilitarianism commonly used by individuals, business firms and government in the decision-making process, as all the cost incurred are determined and analyzed.
This ultimately implies that, it may be used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Cost-benefit analysis (CBA) sums the total cost associated with a project (activity) and compares this cost against the total benefits that would be generated. Thus, it helps in the decision-making process by comparing the net present value (NPV) of the cost of a particular project with the net present value (NPV) of its benefits.
Hence, a person performs a cost-benefit analysis in order to help him or her evaluate the possible positive and negative effects of different economic decisions with respect to an investment, project, activity, or programme.
An agency problem can occur when A. it is difficult or expensive for the owners to verify what the agent is actually doing. B. the owners and agents have different attitudes toward risk. C. the desires and objectives of the owners and agents conflict. D. executives do not select risky strategies because they fear losing their jobs if the strategy fails. E. all of the above.
Answer:
The answer is E.
Explanation:
In a public company, the directors are the agents of the company while the shareholders are the principals(owners) of the company. Because most times, shareholders doesn't have the needed skills and experience to run businesses, they employ director/management (agent) to run their businesses. Most times there is conflict of interest, for example, the managers might prefer a risky business while the shareholders might prefer less risky, this type of scenario creates agency problem.
Agency problem (principal-agent problem) is a conflict of interest that happens when the directors (agent) don't fully represent the best interest of the shareholders (principal)
So all the options in the question represents agency problem.
How do margin trades magnify both the upside potential and the downside risk of an investment position?
Answer and Explanation:
Margin trades work this way because they allow them to extend the amount of money invested regardless of whether the security's price drops or rises. In a more simplified way, we can state that the margin trade allows that even if the price of a security goes up or down, the invested money presents a percentage of gain or loss much bigger than the original value. This is because this money was deposited as a loan guarantee, allowing interest to run on it, increasing it.
A company incurs factory overhead costs of $1,200 and applied $1,500. If the difference is considered immaterial, then the: (Check all that apply.) Multiple select question. Factory Overhead account has a credit balance of $300 before adjusting. adjusting entry will require a debit to Cost of Goods Sold. adjusting entry will require a credit to Cost of Goods Sold. Factory Overhead account has a debit balance of $300 before adjusting.
Answer:
Factory Overhead account has a credit balance of $300 before adjusting.
adjusting entry will require a credit to Cost of Goods Sold.
Explanation:
Given that the actual overhead is $1,200 so the same should be debited to factory overhead account
And, the applied overhead is $1,500 so the same should be credited to the factory overhead account
In addition to this, the applied overhead is more than the actual overhead
So, these two statements should be considered
AJ's Markets is being liquidated. The mortgage holder is owed $830,000, the other secured creditors are owed $128,000, and the unsecured creditors are owed $329,000. Administrative costs of liquidation, wage and benefit payments, and consumer claims amount to $330,000. The firm owes no taxes. The building, which is mortgaged, just netted $794,000 after sale costs. The remaining assets have yielded $467,000 in net proceeds. How much will the unsecured creditors receive per each dollar they are owed?
A. $.027
B. $.025
C. $.333
D. $1.00
E. $.533
Answer:
B. $.025
Explanation:
Calculation to determine How much will the unsecured creditors receive per each dollar they are owed
First step is to determine the Mortgage unsecured
Mortgage unsecured = $830,000 -$794,000
Mortgage unsecured= $36,000
Second step is to calculate the Funds available after expenses
Funds available after expenses = $467,000 - $330,000
Funds available after expenses = $137,000
Third step is to calculate the Funds available after secured claims
Funds available after secured claims = $137,000 - $128,000
Funds available after secured claims= $9,000
Fourth step is to calculate the Total unsecured claims
Total unsecured claims = $36,000 + $329,000 Total unsecured claims = $365,000
Now let determine Percent unsecured claims paid
Percent unsecured claims paid = $9,000 / $365,000
Percent unsecured claims paid= .025*100
Percent unsecured claims paid=2.5%
Therefore the amount of that the unsecured creditors receive per each dollar they are owed will be $.025
When choosing a distraction channel, the impact it has on an offering's costs can significantly affect the Of the offering and how much consumers are willing to pay for it
Hi, you've asked an incomplete question. However, I provided some explanations on distribution channels.
Explanation:
Interestingly, the term distribution channel is one often used in businesses today to refer to the various routes or intermediaries their goods or services passes through before it gets to the end-user or buyer.
Today the popular distribution channels among businesses include:
retailers,wholesalers,distributors, the Internet.Among the various options, the internet has been attributed by some big businesses to be most instrumental in their distribution process.
The following events occurred last year at Dorder Corporation: Purchase of plant and equipment $ 45,000 Sale of long-term investment $ 24,000 Dividends received on long-term investments $ 9,000 Paid off bonds payable $ 12,000 Depreciation expense $ 32,000 Based on the above information, the net cash provided by (used in) investing activities for the year on the statement of cash flows would be: Multiple Choice $(32,000) $(69,000) $(12,000) $(21,000)
Answer:
$(21,000)
Explanation:
The computation of the net cash provided by (used in) investing activities is shown below:
Cash flows from investing activties
purchase of plant and Equipment = -$45,000
Sale of long term investment $24,000
net cash used by investing activities - $21,000
Hence, the last option is correct
Monetary policy refers to Question 23 options: actions taken by banks and other financial institutions regarding their approaches to lending, account management, etc. changes in the money supply to achieve particular economic goals. changes in government expenditures and taxation to achieve particular economic goals. the change in private expenditures that occurs as a consequence of changes in the money supply.
Answer:
changes in the money supply to achieve particular economic goals.
Explanation:
Monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country (Federal Reserve System in the United States of America) to control the money supply and interest rates so as to boost or enhance economic growth.
Basically, monetary policies are used by the central bank to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, the national government through its central bank introduces monetary policy to increase money supply (liquidity). Also, a monetary policy can be used to prevent inflation through the reduction of money supply at a given period of time.
Furthermore, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).
In conclusion, monetary policy refers to changes in the money supply adopted by the central bank to achieve particular economic goals.
Matching Question Match the following strategies for selling products globally with the correct definition. Product extension Product extension drop zone empty. Product adaption Product adaption drop zone empty. Product invention Product invention drop zone empty. Creating a totally new product to satisfy common needs across countries. Selling virtually the same product in other countries. Changing a product to make it more appropriate for a country's climate or consumer preferences. Need help
Answer:
1. Product invention.
2. Product extension.
3. Product adaptation.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
1. Product invention: it involves creating a totally brand new product to satisfy or meet common consumer needs across countries.
2. Product extension: it involves selling virtually the same product in other counties i.e sales of product that are the same in various countries.
3. Product adaptation: it involves changing a product in order to make it more appropriate or convenient for a county's climate or consumer preferences.
Frederick Taylor, the founder of scientific management, examined labor efficiency and effectiveness. His goal was to change: Group of answer choices the motivation factors that relate to job satisfaction and the hygiene factors that relate to job dissatisfaction. the work conditions related to satisfaction of the need for psychological growth. the relationship between technology and labor efficiency. the relationship between management and labor from one of conflict to one of cooperation.
Answer:
the relationship between management and labor from one of conflict to one of cooperation.
Explanation:
The goal of Frederick Taylor and scientific management is to increase labor efficiency. He proposed specialization and training in order to have more efficient workers that can produce more per hour. At the same time, Taylor advocated for higher pay if efficiency and productivity increased. For example, if a worker produces 100 units, he/she should be paid twice than a worker that produces only 50 units.
Calculate the simple interest on a loan of $9000 at an interest rate of 8% for 6 years?
Answer:
$4,320
Explanation:
Covert 8% to a decimal, in this case is 0.08. Then multiply all three values together.
9000 * 0.08 * 6 = 4320
Required solution :
Here we have been provided with the principal, rate of interest and the time period for which the loan was taken.
Principal = $9000Rate = 8% Time = 6 yearsNow, we know that simple Interest is calculated by the formula :
[tex]\boxed{\sf{S.I. \: = \: \frac{P \times R \times T }{100} }} \: \red\bigstar[/tex]Here in this formula,
S.I. is simple Interest R is rate of interest T is Time P is PrincipalPutting all the values in the formula,
[tex]: \: \implies \: \sf{S.I. \: = \: \dfrac{9000 \times 8 \times 6 }{100} }[/tex]
[tex]: \: \implies \: \sf{S.I. \: = \: \dfrac{900 \times 8 \times 6 }{10} }[/tex]
[tex]: \: \implies \: \sf{S.I. \: = \: \dfrac{90 \times 8 \times 6 }{1} }[/tex]
[tex]: \: \implies \: \sf{S.I. \: = \: 90 \: \times \: 8 \: \times 6 } [/tex]
[tex]: \: \implies \: \sf{S.I. \: = \: 90 \: \times \: 48 } [/tex]
[tex]: \: \implies \: \underline{\underline \red{\sf{S.I. \: = \: 4320}}}[/tex]
[tex]\underline{ \bf{Henceforth, \: simple \: interest \: on \: that \: loan \: is \: 4320 \: dollars}}[/tex]
The Outpost, a sole proprietorship currently sells short leather jackets for $369 each. The firm is considering selling long coats also. The long coats would sell for $719 each and the company expects to sell 820 a year. If the company decides to carry the long coat, management feels that the annual sales of the short jacket will decline from 1,120 to 1,040 units. Variable costs on the jacket are $228 and $435 on the long coat. The fixed costs for this project are $23,100, depreciation is $10,400 a year, and the tax rate is 34 percent. What is the projected operating cash flow for this project
Answer:
$134,546
Explanation:
Calculation to determine the projected operating cash flow for this project
Projected operating cash flow=
{[820 × ($719 − 435)] + [(1,040 − 1,120) × ($369 − 228)] − $23,100} × {1 − .34} + {$10,400 × .34}
Projected operating cash flow={[820 × $284)] + [$80 × $141] − $23,100} × {.66} + {$3,436}
Projected operating cash flow= $134,546
Therefore the projected operating cash flow for this project is $134,546
Bates Company makes two products. Product X requires 8,000 hours of labor, and Product Y requires 6,000 hours of labor. Bates undertook an automation program that reduced the consumption of labor required by Product X to only 4,000 hours of labor. Product Y was not affected by the automation process. Overhead cost prior to the automation totaled $15,400. After automation, overhead cost amounted to $35,000. Assuming Bates uses direct labor hours as a companywide allocation base before and after the automation, the amount of overhead cost allocated to:
Answer:
Product Y would be $6,600 prior to automation and $26,400 after automation
Explanation:
Calculation to determine the amount of overhead cost allocated to:
Predetermined overhead rate prior to automation = Estimated overhead / Estimated direct labor hours
Predetermined overhead rate prior to automation=$15,400/(8,000+6,000)
Predetermined overhead rate prior to automation= $15,400 / 14,000
Predetermined overhead rate prior to automation= $1.1per hour
Overhead allocated to product X prior to automation = 8000*$1.1
Overhead allocated to product X prior to automation= $8,800
Overhead allocated to product Y prior to automation = 6000*$1.1
Overhead allocated to product Y prior to automation= $6,600
Predetermined overhead rate after automation = Estimated overhead / Estimated direct labor hours
Predetermined overhead rate after automation= $35,000 / 8000
Predetermined overhead rate after automation=$4.4per hour
Overhead allocated to product X after automation = 4000*$4.4
Overhead allocated to product X after automation = $17,600
Overhead allocated to product Y after automation = 6000*$4.4
Overhead allocated to product Y after automation= $26,400
Therefore Assuming Bates uses direct labor hours as a companywide allocation base before and after the automation, the amount of overhead cost allocated to:Product Y would be $6,600 prior to automation and $26,400 after automation
Excise tax is levied in the __ of goods and services
Answer:
its probably buying
Explanation:
what do you mean by high and middle level profession.
medium level profession can be defined as some one who has moved past entry level but isn't nearing the end . whereas high level profession means a person has moved past entry level and also has reached the end
Shrimpers in South Louisiana have accused China of selling shrimp in the United States at a lower price than U.S. suppliers. The goal of the Chinese, they argue, is to drive down the price of U.S. shrimp. The U.S. shrimpers are accusing the Chinese of Group of answer choices establishing an embargo. trade protectionism. applying import quotas. dumping. outsourcing.
Answer:
Dumping
Explanation:
Dumping is a term in economics that is used in describing a situation whereby a particular firm or country exports specific commodities to a particular foreign country at a price unit that is lower compared to the price unit that such commodity is being sold in that foreign country.
Hence, considering the situation described in the question above, the correct answer to the question is that the U.S. shrimpers are accusing the Chinese of DUMPING
How would you ensure products being put out onto the shop floor are of good quality?
Answer:
1.Train Employees
2.Let technology help the process to shop more efficient and better at quality control
3.Upgrade Equipment
4...Keep Your Shop Floor Clean
Explanation:
hope this is helpful
You have just won $20,000 in the state lottery, which promises to pay you $1,000 (tax free) every year for the next twenty years. The interest rate is 5%. In reality, you receive the first payment of $1,000 today, which is worth $ nothing today. (Round your response to the nearest penny.) The value of the second$1,000 payment is worth __________ $
Answer:
$952.38
Explanation:
The net present value is given by the expression as shown below:
[tex]NPV=\frac{Future value}{(1+r)^{n} }[/tex]
Plugging the values in the above expression,
r=0.05
Future value =$1,000
n=1
[tex]NPV=\frac{1000}{(1+0.05)^{1} }\\NPV=952.38[/tex]
The value of the second$1,000 payment is worth $ 952.38
The Simpsons are buying the Martin's house for $415,000, and closing is set for March 15. The Martins have a loan balance of $230,000 at a rate of 4.7% and have prepaid property taxes ($2,506) and insurance ($1,400), and they also have mortgage interest to consider. Using a 365-day proration method, calculate the prorated amount the Simpsons will owe the Martins at closing. Assume February has 28 days this year. The sellers own the day of closing.
Answer:
$1,997.62
Explanation:
Calculation to determine the prorated amount the Simpsons will owe the Martins at closing.
First step is to Calculate daily rates for taxes to be prorated
Daily rates for taxes=$2,506 ÷ 365
Daily rates for taxes= $6.87
Second step is to calculate Martins pay for the first 74 days which is January 1 through March 15
Pay=74 x $6.87
Pay= $508.38
Now let determine the prorated amount
Prorated amount=$2,506 - $508.38
Prorated amount= $1,997.62
Therefore the prorated amount the Simpsons will owe the Martins at closing is $1,997.62
Imagine that you were reading an international marketing text in which you learned
that the GDP for a nation that was a member of the former Soviet Union was $1.56
billion. A few pages later in the same text, the book states that that nation's real GDP
was $800,000. From reading this information, you would know that:
Answer: this former member of the Soviet Union had a high rate of inflation
Explanation:
Real GDP refers to the measuring of the gross domestic product of a country after it has been adjusted for inflation. On the other hand, the nominal GDP hasn't been adjusted for inflation and makes use of current prices.
Since the real GDP is $800,000 while the other GDP given is $1.56 billion, then it can be infered that this former member of the Soviet Union had a high rate of inflation. This is because when there's inflation, the average of all the prices of the goods and services will rise which is depicted by the difference in the GDP given.
"In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue. (Source: New York Times, July 28, 2012) We learn from the article that despite the larger quantity of lobster caught, the total revenue of the fisherman decreased. This fact means that the demand for lobster is"
Answer:
Inelastic
Explanation:
The inelastic demand means the demand of the product does not vary when there is much change in the price. Let us assume that if the price is increased by 20% so the demand decreased only by 1% so here we can said there is inelastic demand
Also due to increased in the supply, the demand does not increased that much. So if the price is decreased so the demand does not respond due to which the total revenue comes down
So as per the given situation, having the large quantity caught the revenue is decreased so here the demand should be considered inelastic
HELP HELP HELP!!! Why would an investor choose to invest in speculative stocks when he or she could invest in blue-chip stocks instead?
Answer:
They offer potentially high returns to compensate for the high risk associated with them!
Initial investments contributed to a company are which of the following? A. Shareholder's Capital and Debt B. Debt and Retained Earnings C. Shareholder's Capital and Assets
Answer:
The answer is C. Shareholder's Capital and Assets.
Explanation:
Stockholders' equity, also referred to as shareholders' or owners' equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. It is calculated either as a firm's total assets less its total liabilities or alternatively as the sum of share capital and retained earnings less treasury shares. Stockholders' equity might include common stock, paid-in capital, retained earnings, and treasury stock.
Conceptually, stockholders' equity is useful as a means of judging the funds retained within a business.
Contributed capital, also known as paid-in capital, is the cash and other assets that shareholders have given a company in exchange for stock. Investors make capital contributions when a company issues equity shares based on a price that shareholders are willing to pay for them. The total amount of contributed capital or paid-in-capital represents their stake or ownership in the company.
Contributed capital may also refer to a company's balance sheet item listed under stockholders' equity, often shown alongside the balance sheet entry for additional paid-in capital.
Les Stoker, a broker who practices nonexclusive single agency, has a client who is determined to buy one of Stoker's in-house listings. Stoker explained the situation to the client, who agreed to go ahead with the transaction as an unrepresented customer. At lunch, the buyer talked with Stoker about the challenges his family business was having and his wife's upcoming legal case. This information indicated to Stoker that the customer was in a weaker negotiating position than he thought. Because Stoker obtained this information after terminating the agency with the buyer, can he share it with the seller
Answer: No.
Explanation:
Even though Stoker obtained this information after terminating the agency with the buyer, he cannot share it with the seller as in this case, it seems that the full effect of the changed relationship isn't understood by the buyer-customer.
It's essential for the broker to make sure that certain the former client understands the meaning of the situation at hand.
Work-in-Process Inventory for Wendall Productions has a balance of $2,600 at the end of the accounting period. The cost summaries for the uncompleted jobs showed direct materials of $1,200 and direct labor of $800. Wendall applies manufacturing overhead on the basis of direct labor cost. The company's predetermined overhead rate is:
A. $1.00 per direct labor dollar
B. $0.65 per direct labor dollar
C. $0.50 per direct labor dollar
D. $0.75 per direct labor dollar
Answer:
D. $0.75 per direct labor dollar
Explanation:
Total work in process = $2,600
- Direct materials cost = ($1,200)
- Direct labor cost = ($800)
Manufacturing overhead = $600
Predetermined overhead cost = total overhead cost / total direct labor costs = $600 / $800 = $0.75 per direct labor dollar
Which of the following statement about capital market stakeholders is true Group of answer choices oftentimes capital market stakeholders, product market stakeholders, and organizational stakeholders disagree with each other Offering cash dividends to stockholders will please all the capital market stakeholders within groups, capital market stakeholders are always agree with each others for all the firms, capital market stakeholders are the most important stakeholders for firms to cater to
Answer: Often times capital market stakeholders, product market stakeholders, and organizational stakeholders disagree with each other
Explanation:
The various stakeholders a company will often times find that they are clashing with each other as they try to push their agenda at the expense of other stakeholders.
Capital market stakeholders for instance, provide capital to the business and so would prefer if it kept costs as low as possible so that they the capital providers can get an adequate return. Product market stakeholders such as suppliers would be trying to increase their prices so as to make more money and this would go against the wishes of the capital providers leading to a disagreement between both classes.
