Which of the following statements is correct??
A. ?Given the multi-owner nature of most large corporations, the agency costs associated with perquisite consumption are not really a problem.
B. ?Managers may operate in the stockholders' best interests, but they may also operate in their own personal best interests. As long as managers stay within the law, there simply are not any effective controls that stockholders can implement to control managerial decision making.
C. ?The potential for agency problems is greatest when individual stockholders own extremely small proportions of the companies and managers have little, if any, of their own wealth tied up in these companies.
D. ?An agency relationship exists when one or more persons hire another person to perform some service but withhold decision-making authority from that person.
E. ?Managers rule out any potential conflicts of interest with the shareholders by selling the firm's stock to outsiders.
Answer: C
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Answer the following statements true (T) or false (F)
1. Joe, a plant manager, wants to institute a compensation system in which more efficient workers earn higher wages. Joe is proposing to institute a differential rate system. 2. The Hawthorne studies succeeded in drawing attention to the importance of "social man" and how managers using good human relations could improve worker productivity. 3. Olde Manufacturing, a parts supplier to the auto industry, has been using the behavioral approach to management for over 100 years. However, since that method of management is too simplistic for practical use, Olde should begin implementing the newer and more sophisticated human relations movement approach to management, which is the most contemporary approach to management. 4. Behavioral science relies on data from past sales to forecast human behavior to develop strategic plans and goals. 5. When the Americans entered World War II in 1941, they used the British model to form operations research teams to determine how to deploy troops, submarines, and equipment most effectively. These techniques have evolved into quantitative management.
When hotels, motels, and airlines offer discounts in slow selling periods, they are said to be offering ________
A) trade discounts B) quantity discounts C) functional discounts D) seasonal discounts E) trade-in allowances
According to The Global Entrepreneurship Monitor report, the fear of failure in the United States is higher than which region?
a. Latin America b. Oceania c. Asia d. Europe
Jerry received a check from McGregory Corporation as a dividend on his preferred shares. Two days later, one of the corporate directors called him and said he would have to return the check since it was erroneously declared and the company would not be able to pay its day-to-day expenses. Jerry would:
a. have to return the check because the company would be insolvent. b. have to return the check since it was erroneously declared. c. not have to return the check because Jerry acted innocently. d. not have to return the check because the board acted in good faith.