When Managers Do Not Own Very Much of the Net

question 83

Multiple Choice

When managers do not own very much of the net worth of the firm, then

• A)there may be a principal-agent problem.
• B)the firm will usually have to raise most of its funds in financial markets.
• C)the firm will have to rely more on equity financing than debt financing.
• D)the firm will have to rely more on debt financing than equity financing.

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Definitions:

Wireless Standard

Protocols established by organizations for wireless communication that specify the guidelines for data transmission and ensure interoperability between devices.

Haptic Feedback

A tactile response technology that simulates the sense of touch, providing vibrations or movements as feedback to user actions on digital devices.

Wireless Technology

Technologies that enable communication between devices without the need for physical cables or connections.

NFC

Near Field Communication involves a series of protocols that allow two devices, typically with one being a mobile device like a smartphone, to start communicating by placing them in close proximity, within a few centimeters.