Author Question: Which of the following is the best way to prevent an agency problem between shareholders and managers? (Read 75 times)

rayancarla1 · **on:** Apr 25, 2021

Question 1

Which of the following is an advantage of a partnership?
◦ No license, charter, or agreement legally required
◦ Joint liability for company debts
◦ Least regulated form of business
◦ Ownership is easy to transfer
◦ Can raise money using capital markets (debt and equity)

Question 2

Which of the following is the best way to prevent an agency problem between shareholders and managers?
◦ Maintain a proportional relationship between a manager's bonus and the number of employees in the firm.
◦ Compensate managers to a significant degree with shares of stock in their firm.
◦ Reward managers if they keep costs below the budgeted amount.
◦ Pay managers a bonus if their division exceeds its targeted market share.
◦ Pay managers a bonus if their division exceeds its quarterly sales target.

aruss1303 · **Reply #1 on:** Apr 25, 2021

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 39% of students answer this correctly