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Other Fields Homework Help Economics Topic started by: dupoyjohn134 on Oct 9, 2019



Title: In many corporations, there is "separation of ownership from control." What does this mean?
Post by: dupoyjohn134 on Oct 9, 2019

Question 1.

Economists refer to the conflict between the interests of shareholders and the interests of top management as



a financial intermediary problem.



a liability problem.



a principal-agent problem.



a stock-equity problem.



Question 2.

In many corporations, there is "separation of ownership from control." What does this mean?



Top corporate managers only make decisions that have been approved unanimously by shareholders.



The managers of the corporation run the corporation, although the shareholders own the corporation.



The board of directors controls corporate operations, although the managers of the corporation own the corporation.



The shareholders control the corporation, although the board of directors owns the corporation.



Title: In many corporations, there is "separation of ownership from control." What does this mean?
Post by: mnp2357 on Oct 9, 2019
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