An employee who has worked with only one organization all her life, and is now close to her retirement age, is unlikely to find an equally profitable position with another company because:
a. her productivity is very low.
b. her firm-specific capital is of little use to other organizations.
c. other organizations can not verify her previous work record.
d. her preference for leisure is likely to be very high.
Question 2
Value maximization means
A) that managers make decision so as to increase the long-run market value of the financial claims on the firm.
B) that a firm should make products that have the highest price.
C) that managers make decision so as to increase the short-run market value of the financial claims on the firm.
D) all of these choices.
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