What are typical components of executive compensation and how do they resolve principal/agent problems between shareholders and executives?
Executive compensation often takes the form of fixed base pay combined with pay that is sensitive to organizational performance. Such a package can diminish the principal/agent problem between shareholders and executives by inducing executives to take risky decisions in the interests of diversified shareholders that they would not otherwise have made.
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Over the past 20 years, purchases of foreign financial assets by U.S. investors has
A) increased significantly. B) decreased significantly. C) remained fairly consistent. D) become negative.
Use the following diagrams for the U.S. economy to answer the next question.
Which of the diagrams best portrays the effects of a substantial reduction in government spending?
A. Graph (1) B. Graph (2) C. Graph (3) D. Graph (4)
If a 5% cut in the price of a product causes the quantity demanded to rise by 10%, the demand is
A. unit elastic. B. inelastic. C. perfectly elastic. D. elastic.
Which of the following is a correct reason for stating that the United States has a fiduciary monetary system? I. Our money is convertible to a fixed amount of silver or gold. II. Our money has a predictable value
A) I only B) II only C) Both I and II D) Neither I nor II