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Author Question: What does it mean to say there is a separation of ownership from control in large corporations? ... (Read 106 times)

Garrulous

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on: Jun 29, 2018
What does it mean to say there is a separation of ownership from control in large corporations?
 
  What will be an ideal response?

Question 2

Moral hazard refers to the actions people take after they have entered into a transaction that make the other party to the transaction worse off.
 
  Indicate whether the statement is true or false


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Zack0mack0101@yahoo.com

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Shares of stock represent partial ownership in large corporations, so that each of those who own stock own part of the corporation and share in the company's profits. Control of the corporation is possessed by members of its board of directors who select managers responsible for the day-to-day operations of the firm. Members of the board of directors and managers may also own shares of the corporation's stock.

Answer to Question 2

TRUE


Garrulous

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Reply #2 on: Jun 29, 2018
Correct answers!


Zack0mack0101@yahoo.com

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Reply #3 on: Jun 29, 2018
Great! Please up vote :D


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