Traditionally, Wall Street Investment Banks Had Been Organized as Partnerships

question 60

Multiple Choice

Traditionally, Wall Street investment banks had been organized as partnerships, but by 2000 they had converted to being publicly traded corporations.As partnerships, the principal-agent problem is ________, but as publicly traded corporations, the principal-agent problem is often ________.

• A)increased; more severe
• B)increased; less severe
• C)reduced; more severe
• D)reduced; less severe

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Definitions:

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), representing the trade-off between different choices.

Environmental Groups

Organizations dedicated to advocating for and working towards the protection and improvement of the Earth's environment.

Unfair Trade Practices

Business methods considered unethical or illegal, which deceive, mislead, or harm consumers or competitors.

Trade Barriers

Measures imposed by governments to restrict international trade, typically to protect domestic industries, including tariffs, quotas, and regulations.