What Are the Three Major Disadvantages of flExible Exchange Rates

question 12

Essay

What are the three major disadvantages of flexible exchange rates?

Recognize the impact of the 1984 Revised Model Business Corporation Act on corporate asset distributions.

Differentiate between the income statement and balance sheet treatment of various equity transactions.

Comprehend the requirements and implications of current GAAP on earnings per share calculations.

Understand the use of stock options as compensation and their impact on aligning employees' interests with those of owners.

---

Definitions:

Attitudes

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Expectancy-Value Theory

The theory that effort is based on the value or desirability of the goal, multiplied by the person’s assessment of how likely it is that she will be able to attain the goal.

Desirability

The quality of being wanted or wished for as appealing, attractive, or necessary.

Achievable

Refers to a goal or task that is possible to accomplish or attain with the available resources, skills, or conditions.