In which of the following cases will the agency problem between shareholders and managers be the
greatest?
A) The Johnson family owns 50% of the common stock of the company. The other 50% is owned
by 5 mutual funds.
B) 100% of the common stock is owned by the founder of the company who decided to retire and
hired a manager to run his business for him.
C) The common stock of the company is owned by many diverse shareholders, with no
shareholder owning more than 1% of the outstanding stock.
D) All top managers in the company own significant amounts of stock and stock options.
C
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All of the following statements are true about a 3-for-1 split, except:
a. Total contributed capital increases. b. The market price will probably decrease. c. Par value per share is reduced to one-third of what it was before the split. d. A stockholder with twenty shares before the split owns sixty shares after the split.
A careful analysis of customer behavior leads to a better understanding of what kind of channel structure is necessary to satisfy the different segments
Indicate whether the statement is true or false
Finance charges on an auto purchase are a cost of operations
Indicate whether the statement is true or false.
When measured in dollars, street crime costs society more than twice as much as white-collar crime
a. True b. False Indicate whether the statement is true or false