9 Questions
Which type of corporation has unlimited personal liability for the owner?
Sole proprietorship
Which theory suggests that managers are intrinsically motivated to act in the best interest of the corporation and its stakeholders?
Stewardship theory
According to agency theory, who controls the firm and who owns the firm?
The managers control the firm and the shareholders own the firm.
Which of the following is NOT a type of agency cost?
Production costs
What is the purpose of relative performance evaluation?
To compare a firm's performance to its competitors' performance
What is the role of law enforcement in protecting investors according to the text?
To enforce litigation risk as a discipline mechanism
What is the responsibility of the board of directors?
To represent the owners or shareholders
What is the most common board structure in Germany, Austria, The Netherlands and Denmark?
Two-tier board system
What is the purpose of the nomination committee?
To appoint executives and ensure balance of skills and expertise
Test your knowledge on three types of corporations: sole proprietorship, partnership, and limited liability company (LLC). Learn about the differences between them, including ownership and liability structures, in this quiz. Sharpen your understanding of LLCs, which will be the main focus of this course. Get ready to expand your corporate knowledge!
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