A Major Conflict of Interest Between Top Executives and Owners

question 55

Multiple Choice

A major conflict of interest between top executives and owners is that top executives wish to diversify the firm in order to __________, whereas owners wish to diversify the firm in order to __________.

• A) generate free cash flows; reduce the risk of total firm failure
• B) increase the price of the firm's stock; increase the dividends paid out from free cash flows
• C) reduce the risk of total firm failure; reduce their total portfolio risk
• D) reduce their employment risk; increase the company's value

Record the journal entries for the acceptance of note receivable and calculate interest on notes receivable.

Describe the process of factoring receivables and perform related journal entries.

Understand the implications of service charges on sales transactions involving credit cards.

Analyze financial results using accounts receivable turnover to assess company performance in managing receivables.

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Definitions:

Public Policies

are strategies and measures formulated and implemented by governmental entities to address public issues and regulate societal functions.

White Supremacy

A racist ideology based on the belief that white people are superior to those of all other races, especially the black race, and should thus dominate society.

Mississippi Legislature

The legislative body of the U.S. state of Mississippi, responsible for creating state laws and policies.

Trademark

Any word, name, symbol, or device used in business to identify and promote a product. Its counterpart for service industries is the service mark.