Question 35 (2 points) Which one of the following represents the best effort to reduce the agency problem? Question 35 options: a. Paying senior managers a cash bonus each year based on the number of people employed by the company b. Giving senior managers bonuses consisting of shares of company share whenever the company improves its production efficiency c. Increasing the salary of the company president every time the company opens a new store d. Providing company cars to all managers employed by the firm for more than one year

Question 36 (2 points) Robert invested in shares and received a positive return over a 9-month period. The type of returns which will be greater is: Question 36 options: a. Holding period return (HPR) b. Effective annual return (EAR) c. Annual percentage rate (APR) d. There is not enough information to make a definitive choice.

Question 37 (2 points) All the followings are the disadvantages of the Net Present Value method EXCEPT FOR: Question 37 options: a. Not every manager is familiar with the concept of NPV. b. It is difficult to identify an appropriate discount rate. c. Cash flows are assumed to incur at the end of each year but this is not always true in practice d. It ignores about the time value of money.

Question 38 (2 points) The additional return offered by a risky investment relative to a safer one is called __________. Question 38 options: a. The risk-free rate b. The risky return c. The risk premium d. The insurance premium

Question 39 (2 points) The return on capital employed ratio is: Question 39 options: a. the margin that a business makes between the buying price and selling price of goods. b. a measure of operating profit compared to capital employed. c. a comparison of operating profit to sales. d. a measure of expense compared to sales.

Question 40 (2 points) If you invested RM 5,000 today in an account that pays 5% interest compounded annually, find how much your investment will be in the account after 5 years if there are no withdrawals. Question 40 options: a. RM 8,631.41 b. RM 6,381.41 c. RM 6,841.31 d. RM 8,461.31