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Question 2 Not complete Marked out of 1 .00 W Flag question Match the following rule of profits to the correct descriptions. A company adopts to new technology or develops high- quality product which is rewarded '1' Choose-.- with the potential for above normal profits. Above-normal profits can arise because of the exceptional managerial skills of well-managed firms. When a firm is effectively able to dominate the market and persistently earn above-normal rates of return. Compensating the owners of the firm for the risk they assume when making their investments. Check Managerial Efficiency Theory of Profit Risk-Bearing Theory of Profit Monopoly Theory of Profit Innovation Theory of Prot l I Choose... Choose... J 0 0 Question 3 Not complete Marked out of 1 .00 \\7' Flag question Principal -agent problems arise from the inherent unobservability of managerial effort combined with the presence of random disturbances in team production. In an attempt to mitigate these agency problems, firms incur several agency costs, which of the following is considered as agency costs? (Check all that apply) Select one or more: a. Separation of ownership (shareholders) and control (management) in large corporations permits managers to pursue goals, such as maximization of their own personal welfare. b. Grants of stock options or restricted stock from Treasury stock so executive compensation aligns the incentives for management with shareholder interestes. 0. Internal audits and accounting oversight boards to monitor management's actions. d. Complex internal approval processes to limit discretion, but which prevent timely responses to business opportunities. e. Bonding expenditures and fraud liability insurance to protect the shareholders from managerial dishonesty. Check Question 4 Which of the following is such managerial decision making seeks to do? Not complete (Check all that apply) Marked out of 100 Select one or more: X\" Flag a. Adopt the most efficient and effective production process to reduce question 00515. 13-. Consider the company constraint when deciding the shortrun and long-run production. 0. Offer discount to the product when the competitors reduce their prices. d. Choose the most updated technology without considering the effectiveness to the production. e. Find different solutions to improve efficiency. Check QUGStiO" 5 A effective managers can always motivate the team to put forth 110 percent Not complete effort to achieve maximize returns {economic profits) to the owners of the Maked out of business because the essence of teamwork is synergistic value creation in 1.00 excess of the sum of the parts. if Flag question Select one: True False Check