The board of directors and the CEO
A) do not have a principal/agent relationship.
B) are agent and principal, respectively.
C) are principal and agent, respectively.
D) are one in the same for small corporations.
C
You might also like to view...
Provide two examples of economics being used as a tool by each of a student, a business, and a government. Classify your examples as dealing with microeconomic topics and macroeconomic topics
What will be an ideal response?
In the consumption function C = a + c(Y - T), "autonomous consumption" appears as
A) a. B) c. C) cY. D) -cT. E) c(Y - T).
Corporations can acquire funds for investment projects through
a. both c and e b. all of the following c. borrowing (e.g., from banks) d. issuing bonds e. issuing stock
Suppose the court system begins to make it easier for plaintiffs to win large payments from doctors and other medical professionals who are accused of malpractice. What result would you expect?
A. Doctors would order more diagnostic tests and treatment procedures even when the costs of those procedures exceed the benefits to the patient. B. Claims on medical insurance plans would probably fall. C. The cost of medical care would fall because doctors would avoid expensive tests and treatments. D. More people would seek training to become medical professionals because they would be able to make more money ordering tests and treatment procedures.