Question

Describe a back-loaded earnings problem and discuss which managers are likely to have the problem.

Describe a back-loaded earnings problem and discuss which managers are likely to have the problem.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:

A back-loaded earnings problem, as the name proposes is settling on a decision to pick a investment whose profit are concentrated towards the end of life of the projects.

  • Such undertakings will attract more expenditure beginning years and yield little income with a promise to improve immensely in future.
  • This might be a case with projects having a long skyline.
  • Such undertakings may show a positive NPV however no doubt will have Negative financial profits.

Administrators whose remunerations are not straightforwardly connected to current earnings/profits will in general lean toward a back loaded earnings project instead of a front stacked with a conviction that their present earnings are low since they are making incredible investments  which would take care of tremendous returns in future.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Describe a back-loaded earnings problem and discuss which managers are likely to have the problem.
Describe a back-loaded earnings problem and discuss which managers are likely to have the problem.
Describe different types of noises. Which is likely to pose the greatest problem to network managers?
Describe different types of noises. Which is likely to pose the greatest problem to network managers?
a). Relative to managers in more monopolistic industries, are managers in more competitive industries more likely...
a). Relative to managers in more monopolistic industries, are managers in more competitive industries more likely to spend their time on reducing costs or on pricing strategies? b). Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium? c). Describe an important difference(s) in the way an economist and a businessperson might view a monopoly.
“One way to reduce the agency problem is to understand what motivates the agents (managers)”. Discuss...
“One way to reduce the agency problem is to understand what motivates the agents (managers)”. Discuss this statement using the Agency theory and Maslow’s hierarchy of needs model
1. Discuss reasons that employees’ training might not have lasting effects. How can managers ensure that...
1. Discuss reasons that employees’ training might not have lasting effects. How can managers ensure that training lasts? 2. Using Exhibit 8.2, describe how a manager can effectively and fairly evaluate employees. 3. Explain the pros and cons of 360-degree appraisals of employees. 4.   Discuss how managers can determine pay for a job. 5.   Compare internal versus external equity in determining compensation. 6.   Why might a cafeteria benefit plan be useful for workers whose ages range from 18 to 65?...
Which of the folkowing would describe the plannjng function of managers? a. Comminucating the goals of...
Which of the folkowing would describe the plannjng function of managers? a. Comminucating the goals of managers to the employees b. Assessing whether the company is achieving its goals c Evaluatig how well plans wrre implemented d. Measuring the performance of managers
Describe the cost conditions under which price discrimination is most likely? Why is price discrimination likely...
Describe the cost conditions under which price discrimination is most likely? Why is price discrimination likely under these conditions?
Describe how computers have improved "back-of-envelope" techniques in cost analysis?
Describe how computers have improved "back-of-envelope" techniques in cost analysis?
Discuss the extent to which the Covid-19 pandemic might bring back trade protectionism.
Discuss the extent to which the Covid-19 pandemic might bring back trade protectionism.
In financial statement analysis, a UK listed company announced that it would buy back as much...
In financial statement analysis, a UK listed company announced that it would buy back as much as 45% of its shares, with the repurchase being financed by new borrowings. Why do firms repurchase stock? In respect of the above case discuss what the likely effect the repurchase will have on earnings per share and earnings per share growth. Will the repurchase add value to shareholders, and why?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT