Briefly discuss mechanisms that can be used to align theinterests of shareholders and managers. The interests ofshareholders and managers can be aligned by setting up stockoptions […]
A limited liability company (LLC) is:a. able to retain limited liability for owners.b.t axed like a corporation. c.a cross between a partnership and acorporation.d. a and […]
The opening of new international markets to the U.S. can beattributed to:a. acceptance of a free market system by third world countries.b. regulation of U.S. industries.c. […]
What does the agency problem refer to?a. The conflict that exists between the board of directors and theemployees of the firmb. The problem associated with financial […]
Which of the following forms of business organization is thedominant economic force in the United States?a. The sole proprietorshipb. The general partnershipc. The limited partnershipd. The […]
For these types of organization no distinction is made betweenbusiness and personal assets.a. Sole proprietorshipb. General partnershipc. Limited partnershipd. All of the abovee. Both a and […]
Which of the statements below is true?a. The sole proprietorship and the general partnership both featureunlimited liability.b. It is very complicated (legally) to establish a corporation.c. […]
Which of the following types of business forms is the most idealin terms of attracting new capital?a. Sole proprietorshipb. Limited partnershipc. General partnershipd. A public corporation