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Home Q & A Board Other Fields Homework Help Business Economics
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dupoyjohn134 dupoyjohn134
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4 years 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 
InMicro

InMicro


Edition: 1st
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mnp2357mnp2357
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4 years ago
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