What does the agency problem refer to?

A) The conflict that exists between the board of directors and the employees of the firm.
B) The problem associated with financial managers and Internal Revenue agents.
C) The conflict that exists between stockbrokers and investors.
D) The problem that results from potential conflicts of interest between the manager of a business and the stockholders.


Answer: D

Business

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The project manager must quickly establish operational ground rules for how the team will work together. These include planning, tracking, managing change, and relationship decisions. Which of the following is an example of a planning decision?

A. Who will generate and distribute reports? B. How will progress be assessed? C. How will changes be documented and evaluated? D. What departments will the team need to interact with during the project? E. What are the specific roles and responsibilities of all the participants?

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Due to the ________ of services, service retailers like Six Flags, Delta, and Applebee's restaurants, sometimes find it difficult to match supply and demand. 

A. inconsistency B. compatibility C. intangibility D. consumability E. perishability

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Some countries have abundant ____________, or the land, labor, capital, and related production factors a nation possesses.

Fill in the blank(s) with the appropriate word(s).

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Which of the following is/are not true concerning an employee stock options' benefit element?

a. One cannot measure the amount of the benefit element before the exercise date. b. Stock options with exercise prices less than the current market price of the stock have a higher value, other things equal, than stock options with exercise prices exceeding the current market price of the stock. c. Stock options that are "in the money" have a higher value, other things equal, than stock options that are "out of the money". d. A stock option whose exercise price exceeds the current market price has economic value because of the possibility that the market price will exceed the exercise price on the exercise date . e. none of the above

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