As Mergers, Acquisitions, and Restructuring Have Increased in Importance, Agency

question 1

Multiple Choice

As mergers, acquisitions, and restructuring have increased in importance, agency theory has become more important in assessing whether

• A)a stock repurchase should be undertaken.
• B)shareholder goals are truly being achieved by managers in the long run.
• C)managers are actually agents or only employees of the firm.
• D)managers and owners are actually the same people with the same interests.

---

Definitions:

Interest Rates

The expense associated with taking out a loan or the benefit received from depositing funds, typically described as a yearly percentage of the total sum.

GDP

Gross Domestic Product (GDP) signifies a country's economic output, quantifying the sum value of all produced goods and services within a designated timeframe.

Federal Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues within a fiscal year.

National Debt

The total amount of money that a country's government has borrowed, usually as a result of spending more than it receives in income.