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When a business is set up as a partnership, the owners of the business face unlimited liability.

coolcat

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When a business is set up as a partnership, the owners of the business face unlimited liability.

Question 1.

Which of the following is a solution to the principal-agent problem?

• threaten to liquidate the firm

• link top manager salaries to the profits of the firm or the price of the firm's stock

• have the CEO be a rotating position

• forbid managers from owning any company stock

Question 2.

When a business is set up as a partnership, the owners of the business face unlimited liability.

• true

• false

Textbook

Microeconomics

Edition: 7^th

Authors: Hubbard, O'Brien

Read 131 times

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beunikuel

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5 years ago

More solutions for this book are available here

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coolcat Author

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5 years ago

Helps a lot... Now I'm ready for my quiz

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