Question
Please help (1) Is limited liability always an advantage for Corporation and its shareholders? Explain yes or No (2) Company (A) pays its Managers a
Please help
(1) Is limited liability always an advantage for Corporation and its shareholders? Explain yes or No
(2) Company (A) pays its Managers a fixed salary. Company (B) ties compensation to the performance of the stock. Which company's compensation package would most effectively mitigate conflicts of interest between managers and shareholders?
(3)Which term goes best with the sentence?
a) Expected Return
b) Financial Assets
c) lower
d) Market value
e)Higher
f) Opportunity cost of Capital
g) Real Asset
h) Dividend
i) Shareholders
Shareholders want managers to maximize the __________________ of their investments. The firm faces a trade off. Either it can invest its cash in _____________ or it can give the cash back to _______________ in the form of a/an ______________________ shareholders want the company to invest in ____________ only if the _________________ is __________________ then they could earn for themselves in equivalent risk investment. The return that shareholders could earn for themselves is therefore the _______________ for the firm
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