Often managers require a payment due to their risk aversion. This payment is called
A) a golden parachute.
B) greenmail.
C) a poison pill.
D) rollover compensation
A
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According to Davis (1963), industrial firms need capital to expand, grow and develop. They will seek the most efficient means to finance this capital. In the U.S
during its period of industrialization, industrialists raised the resources needed to invest in capital accumulation by (a) tapping into the lending power of giant commercial banks. (b) utilizing the lending power of a large number of small banks. (c) merging. (d) engaging in all of the above.
The fact that government has a monopoly on force _____
a. means that government can protect individual rights but is strong enough to violate them b. means that government can protect individuals rights yet is strong enough not to violate them c. means that individuals have secure and well-defined property rights d. means that individuals need not worry about threats from other governments
The risk of financing a project by issuing common stock is borne by
A. the issuing firm only. B. the stockholders only. C. both the issuing firm and the stockholders. D. the government.
The invisible hand refers to the coordination that occurs from:
A. everyone working in his or her own self-interest. B. a government agency finding efficiencies. C. everyone working for the overall good of society. D. a government coordinating economic activity.