Discuss the three problems that affect the establishment of a sound executive reward system.
What will be an ideal response?
The three problems are agency problem (i.e., potential conflict of interest between shareholders and their “agents”); problem of value (i.e., need to reward the executives in a way that is systematically related to the market value of the corporation); and signaling problem (i.e., providing clear and effective inducements to actions).
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A closed economy is one in which
a. imports exactly equal exports, so that trade is balanced. b. domestic firms invest in industries overseas. c. the home economy is isolated from foreign trade. d. technological innovations and improvements in the efficiency of international transport are highly valued.
Stock in Merlin Corporation is held equally by Jane, Eve, and Fred. Merlin seeks additional capital to buy a valuable tract of land that will cost $6,000,000. Jane, Eve, and Fred propose to loan Merlin $2,000,000 each, taking from Merlin a $2,000,000 10-year note with interest payable annually at five points above the prime rate. Merlin Corporation has current taxable income of $7,000,000. How are the payments on the notes treated for tax purposes?
What will be an ideal response?
Characteristics of collaborative strategies include
A. keeping the other party happy. B. an imbalance of outcomes. C. win-lose bargaining. D. win-win negotiation.
Answer the following statements true (T) or false (F)
1. Transactional teams are those that exist within a country’s own borders but comprise of members from various cultures. 2. Organizational subcultures exist only in organizations within individualistic societies. 3. Japanese teams more quickly implement decisions than teams in U.S. companies. 4. Team norms, member roles, and patterns of interaction are included in team culture.