Which of the Following Is True of How Managers May

question 32

Multiple Choice

Which of the following is true of how managers may differ from shareholders?

• A)Managers can diversify the risks more easily.
• B)Managers are more likely to pursue projects with high potential payoffs.
• C)Managers diversify investments more easily.
• D)Managers are less averse to risk.
• E)Managers are likely to prefer more emphasis on uncertain incentives than base pay.

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Definitions:

Break-even Point

The point at which total costs and total income are equal, so there is no loss or gain, and the business is just covering all its costs with its sales revenue.