QUESTION 7

1. In general, diffuse ownership of a firm produces weak monitoring of its managers' decisions. Diffuse ownership implies presence of:
2. a.a large number of large-block shareholders and many institutional owners
3. b.a large number of shareholders with small holdings and few large-block shareholders
4. c.a large number of institutional owners and few shareholders with small holdings
5. d.a small number of institutional owners and many large-block shareholders

3 points

QUESTION 8

1. Alphabet Inc. is a conglomerate with businesses in a host of industriesit is the parent company of Google, life sciences company Verily, venture capital firm CapitalG, and many others. The owners are trying to decide if there are synergies between these businesses. In order to determine if synergies are present, what do they need to consider?
2. Will operating these businesses together increase customers' willingness to pay?
3. b.Will operating these businesses together reduce our average costs?
4. c.What is the strategic fit between these companies?
5. d.Both A and B
6. e.Both B and C