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

question 72

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 are owners of the company and act the same with the same interests.

---

Definitions:

Parietal Lobes

Regions of the cerebral cortex in front of the occipital lobes and behind the frontal lobes; these regions are important for the sense of touch and for picturing the layout of spaces in an environment.

Left Hemisphere

The left side of the human brain, associated with analytical thought processes, language, and logic.

Frontal Lobes

Regions of the cerebral cortex at the front of the brain; these regions are important for movement and complex processes (rational thought, attention, social processes, etc.).

Amygdala

A region of the brain involved in experiencing emotions, particularly fear, and processing emotional memories.