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.
A sod house in North Dakota, 1896. Individual “bricks” of sod were hewn from the ground and stacked
A Possible Problem with the Anger and Concentration Experiment
Problem
Problem
Problem
Problem