Amos Ball, Inc

question 117

Multiple Choice

Amos Ball, Inc., is a printing company in Iowa that has been family owned and managed for three generations. Which of the following statements is most likely to be TRUE?

• A) Agency costs at Amos Ball are high.
• B) If research findings are valid, Amos Ball, Inc., will perform better if a family member is CEO than if an outsider is CEO.
• C) At Amos Ball, the opportunity for managerial opportunism is high.
• D) The functions of risk-bearing and decision making are separate at Amos Ball.

---

Definitions:

Unemployment Tax Rates

Rates set by governments to fund unemployment insurance programs, calculated as a percentage of employer payroll expenses.

Accrued Vacation Benefits

The earned but not yet taken or paid vacation time that is owed to employees, recognized as a liability on the balance sheet.

Estimated Liability

A financial obligation or debt that is anticipated but not yet confirmed in amount or due date.

Note Payable

A written promise to pay a specified amount of money, often bearing interest, at a future date.