Questions and Answers
True or false: A principal-agent problem refers the situation that managers always align their interests with the shareholders of the firm.
False
True or false: Dividends paid to shareholders are taxed twice as they are on one hand part of the firm's earnings and on the other hand dividend income for the shareholders.
True
True or false: Capital requirements when founding different types of firms are positively related to the level of liability the owners of the firm have.
True
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