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dupoyjohn134 dupoyjohn134
wrote...
Posts: 398
A week ago

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.

Textbook 

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Edition: 1st
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mnp2357mnp2357
wrote...
Posts: 337
A week ago
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Answer 1

a principal-agent problem.



Answer 2

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

1

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