Why Would Payout Decisions Be Used by Management to Signal

question 73

Essay

Why would payout decisions be used by management to signal the prospects of the firm?

---

Definitions:

Alliances

Cooperative agreements that allow firms to remain independent, but cooperatively pursue strategies consistent with their individual missions.

Bill of Material

A comprehensive list of raw materials, components, and instructions required to construct, manufacture, or repair a product or service.

Assembly Drawing

A detailed diagram that shows the parts of an object and how they fit together to form the final product.

Engineering Drawing

A drawing that shows the dimensions, tolerances, materials, and finishes of a component.