these two just double check ans::
Question 4 for #4 i put down D is that correct?
Which of the following management actions reflects agency problems due to the fact that information held by the agent is hard to observe?
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A. |
Giving work a mediocre effort so managers do not have to work excessive hours |
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B. |
Enriching managers themselves even if shareholders do not benefit |
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D. |
Paying for services that seem excessive to the shareholders |
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E. |
Pumping up the firm’s short-run performance even if shareholders are harmed in the long-run |
Question 3 i put down for #3 A is that correct???
Which of the following is not a principal/agent relationship?
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A. |
Shareholder/IRS auditors of a company |
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B. |
Shareholders/Company CEO |
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C. |
Company/Hired counsel |
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D. |
Carmaker/Auto part supplier |
Question 8
What type of performance measurement based process was used to determine Jack Welch’s successor, Jeffrey Immelt, as CEO of GE?
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B. |
Promotion tournament |
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C. |
Ratings compression |
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D. |
Management-by-objective system |
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E. |
360-degree peer review system |
Question 6
Which of the following terms describes a phenomenon whereby individuals ignore their own information about the best course of action and instead simply do what everyone else is doing?
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A. |
Relative performance |
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B. |
Risk sharing |
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C. |
Absolute performance |
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E. |
Herding |
Question 1
What term best describes the payment which must be offered to a risk-averse individual to willingly accept a gamble?
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B. |
Risk premium |
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C. |
Certainty equivalent |
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D. |
Risk equivalent |
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E. |
Certainty payment |
Business & Finance homework help
