If a Manager Does Not Own Stocks in the Firm

question 49

Multiple Choice

If a manager does not own stocks in the firm he is running:

• A)he cannot be considered a bona fide manager.
• B)he is not a residual claimant.
• C)he still is a residual claimant since he has a say on how firm's resources are used.
• D)he is called a lame duck manager.

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