The stockholder-manager conflict in a large publicly held firm is manifested in all of the following ways except
A) the managers implement very low-risk strategies that have very low returns.
B) the managers implement strategies that maximize the value of the firm.
C) managers pursue strategies that maximize firm size rather than the value of the firm.
D) the managers attempt to maximize their salaries.
B
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The above figures show the market for oranges. Which figure(s) shows the effect of a new government program that provides each public school child with an orange to start the day?
A) Figure A B) Figure D C) Figures A and C D) Figures A and D
For certain intangibles that cannot be measured, it is best to
A. guess. B. exclude them from cost benefit analysis, and then calculate how large they must be to reverse the decision. C. reevaluate using the Hicks-Kaldor criterion. D. leave it to the private sector to decide on value.
Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment?
A. The rate of inflation would decline. B. The rate of inflation would rise. C. The government spending multiplier would double. D. Interest rates would fall.
Allocative efficiency is achieved when firms produce goods and services
A) at the lowest possible cost. B) that consumers value most. C) at the lowest opportunity cost. D) at a marginal cost of zero.