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

Understand the psychological and social implications of popularity, friendship, and rejection in adolescence.

Describe the disengagement theory and its relevance to happiness in late adulthood.

Develop strategies for recognizing and responding to signs of suicidal contemplation.

Understand the symptoms and causes of jet lag and how it affects one's sleep pattern and overall wellbeing.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until the end of its lifetime.

Face Value

The nominal value printed on a financial instrument such as a bond or stock certificate; it is the amount paid at maturity or when the instrument is issued.

Current Price

The latest market price at which an asset or service is traded.