The Twin Agency Problems Limiting Financial Globalization Are Caused by These

question 21

Multiple Choice

The twin agency problems limiting financial globalization are caused by these two groups acting in their own self-interests rather than the interests of the firm.

• A) rulers of sovereign states and unsavory customs officials
• B) corporate insiders and attorneys
• C) corporate insiders and rulers of sovereign states
• D) attorneys and unsavory customs officials

---

Definitions:

Transactions

The events or interactions between businesses or individuals that have economic substance and can be measured in terms of money.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, used to ensure the accounting entries are in balance.

T-Accounts

A visual representation used in accounting to show the debits and credits in separate columns for each account in the general ledger.

Dividends

Distributions from a corporation to its shareholders, representing a share of the company's earnings.