Which of the following would be best considered to be an agency conflict problem in the behavior of the following financial managers?
A) Bill chooses to pursue a risky investment for the company's funds because his compensation will substantially rise if it succeeds.
B) Sue instructs her staff to skip safety inspections in one of the company's factories, knowing that it will likely fail the inspection and incur significant costs to fix.
C) James ignores an opportunity for his company to invest in a new drug to fight Alzheimer's disease, judging the drug's chances of succeeding as low.
D) Michael chooses to enhance his firm's reputation at some cost to its shareholders by sponsoring a team of athletes for the Olympics.
Answer: A
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Allies can be defined as
A. parties with whom a negotiator has high agreement on the vision or objectives, but low to moderate levels of trust. B. negotiators who are low in agreement and low in trust. C. people with whom a negotiator has conflicting goals and objectives, but who can be trusted to be principled and candid in their opposition. D. parties who are in agreement with their goals and vision, and whom the negotiator trusts.
Identify a true statement about a limited liability company (LLC).
A. A limited liability company can be taxed as a corporation only. B. One of the owners of a limited liability company must be designated as a general partner with unlimited personal financial liability. C. A limited liability company can have no more than 100 stockholders. D. Only one of the owners of a limited liability company can participate in the management of the business. E. A limited liability company can have more than one type of stock (ownership interest) outstanding.
The Polishing Department of Laminates, Inc had 18,000 units in process on June 1 and received 30,000 units from the Machining Department
What is the number of units to account for by the Polishing Department for June? The company uses the FIFO costing method. A) 30,000 units B) 18,000 units C) 48,000 units D) 12,000 units
A firm's board of directors has a variety of tools at its disposal to control management's activities, including all of the following EXCEPT:
a. Controlling the firm's capital structure. b. Requiring board approval of major capital expenditures, acquisitions, divestitures, security offerings, etc. c. requiring board approval of all mergers and acquisitions. d. hiring outside consultants to scrutinize major projects. e. firing the CEO. f. ALL OF THE ABOVE ARE TOOLS AVAILABLE TO THE BOARD.