The Conflict of Interest That Arises When a Shareholder Who

question 35

Multiple Choice

The conflict of interest that arises when a shareholder who has a controlling interest in multiple firms moves profits away from companies in which he has relatively less cash flow rights toward firms in which he has relatively more cash flow rights is called:

• A)expropriation.
• B)earnings management.
• C)tunnelling.
• D)profit mining.
• E)cash extraction.

Grasp the various strategies and methods for HR forecasting, including quantitative and qualitative approaches.

Understand the significance of core capabilities and how they distinguish an organization from its competitors.

Recognize the relevance of economic and demographic factors in environmental scanning and labor market analysis.

Comprehend the principles of value creation within an organization and the differentiation between products and services.

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Definitions:

Natural Monopolist

A natural monopolist is a single supplier in a market that can produce the total quantity of a good or service demanded at a lower cost than if there were multiple suppliers, due to high fixed costs and economies of scale.

Price-Regulated

A market condition where the government sets the maximum or minimum prices for certain goods or services to protect consumer interests or ensure affordability.

Marginal Cost

The extra expense associated with the creation of an additional unit of a product or service.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable, leading to a mismatch in supply and demand.