which of the following best describes the agency relationship in a business?

2. A collection of securities in called Basket Congomerate A t d Any of the above E Portfollo 3 Finance has its theoretical rootsinbut requires a practical understanding of but a Accounting, Economies b Accounting, The stock market d Economics, Accomumting Companies generally create Sabilaies that exceed assets by s. a. Borrowing money they cannot repay b. Issuing additional stock c. Losing a lawsuit d. Aand C 5 Which of the following best describes the agency relationship in a business setting? a. Stockholders are the agents of the bondholders b. Management are the agents of the employees c. Bondholders are the agents of management d. Management are the agents of the stockholders e. Stockholders are the agents of the employees Suppose pretax earings are $100,00 and the corporate tax rate is 42% How much additional money can a business owner receive by declaring the earnings as personal income which is taxed at rate of 31%? a $11,000 S42.000 $31,000 d $3,200 Page 2 of 6 PROFESSOR MCLAUGHLIN