Briefly discuss the issues in the agency conflict problem
What will be an ideal response?
Answer: The agency conflict problem arises out of the principal-agent relationship existing between the shareholders and managers of a corporation. Although managers are required to put the shareholders interest ahead of their own, in practice they tend to put their own interest ahead of the shareholders' interests.
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Restitution is an action to undo a contract
Indicate whether the statement is true or false
Which of the following is NOT required to determine processing requirements or workloads of each department?
a. which employee or department will do the work b. the type of work that needs to be done c. how much to charge for the service d. how that work will be completed
A firm following the _____ dividend policy pays a specific dollar dividend each year or periodically increases the dividend at a constant rate.
A. free cash flow B. residual C. constant payout ratio D. stable, predictable E. extra
The profit margin ratio is the same as the gross profit ratio.
Answer the following statement true (T) or false (F)