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Questions and Answers
Which type of corporation has unlimited personal liability for the owner?
Which type of corporation has unlimited personal liability for the owner?
- Sole proprietorship (correct)
- Joint-stock
- Partnership
- Limited liability company
Which theory suggests that managers are intrinsically motivated to act in the best interest of the corporation and its stakeholders?
Which theory suggests that managers are intrinsically motivated to act in the best interest of the corporation and its stakeholders?
- Agency theory
- Stewardship theory (correct)
- Stakeholder theory
- Transaction cost economics
According to agency theory, who controls the firm and who owns the firm?
According to agency theory, who controls the firm and who owns the firm?
- The shareholders control the firm and the managers own the firm.
- The employees control the firm and the customers own the firm.
- The managers control the firm and the shareholders own the firm. (correct)
- The customers control the firm and the employees own the firm.
Which of the following is NOT a type of agency cost?
Which of the following is NOT a type of agency cost?
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What is the purpose of relative performance evaluation?
What is the purpose of relative performance evaluation?
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What is the role of law enforcement in protecting investors according to the text?
What is the role of law enforcement in protecting investors according to the text?
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What is the responsibility of the board of directors?
What is the responsibility of the board of directors?
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What is the most common board structure in Germany, Austria, The Netherlands and Denmark?
What is the most common board structure in Germany, Austria, The Netherlands and Denmark?
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What is the purpose of the nomination committee?
What is the purpose of the nomination committee?
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