Which of the following statements is FALSE?
A) Controlling shareholders pay for their control rights because the firm effectively faces a higher cost of equity for outside capital.
B) Most countries follow what is called the stakeholder model, giving explicit consideration to other stakeholders—in particular, rank-and-file employees.
C) In a pyramid structure, a family first creates a company in which it owns more than 50% of the shares and therefore has a controlling interest.
D) A conflict of interest arises because the family has an incentive to try to move profits (and hence dividends) down the pyramid—that is, toward companies in which it has few cash flow rights and away firms in which it has more cash flow rights.
Answer: D
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Thomas is writing a report that contains a vertical column bar chart showing last year's employee enrollment in three management training programs: conflict resolution, time management, and team building. Which of the following statements best interprets and analyzes the graph?
a. Figure 1 shows enrollment for each of the management training programs we offer. b. As Figure 1 indicates, the enrollment for team building was almost double that of time management; and conflict resolution was the highest of the three. c. The enrollment for time management was 42; for team building it was 81; and for conflict resolution it was the highest at 127. d. Figure 1 data indicate that employee management training needs are shifting from training in time management and team building toward conflict resolution.
A prisoner testified that he escaped from prison, not because he wanted freedom, but rather to escape physical abuse. If true, should this situation justify the escape? What ramifications of such a defense can you identify?
Jayleen Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows. Carpet Kleen Floor DeodorizerUnits produced and sold 5,000 4,000 Machine hours used 5,000 2,000 Sales price per unit$7 $10 Variable cost per unit$4 $8 Fixed costs of $20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same.Assuming there is unlimited demand for both products and Jayleen has 10,000 machine hours available, how many units of each product should be produced and sold? Carpet KleenFloor DeodorizerA.0 units0 unitsB.0 units20,000 unitsC.5,000 units10,000 unitsD.8,000 units4,000 unitsE.10,000 units0 units
A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E
A(n) _____ brand is one owned by the wholesaler or retailer.
A. intermediate B. private C. generic D. corporate E. primary