In a Corporation, the Managers Are the Stockholders

question 240

Multiple Choice

In a corporation, the managers are the stockholders'

• A) principals.
• B) agents.
• C) level coordinators.
• D) incentive system.

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Definitions:

Amortization

A financial term referring to the gradual reduction of a debt over a period of time by periodic payments of principal and interest.

Acquired Subsidiary

A company that becomes a subsidiary through purchase or takeover by another company.

Consolidated Goodwill

An intangible asset that appears when a parent company acquires a subsidiary and is recorded after consolidation processes.

Acquisition Transaction

An acquisition transaction is a business deal in which one company purchases most or all of another company's shares to take control.