The Management of Five Square Corp

question 18

Multiple Choice

The management of Five Square Corp.wants to reduce the separation between ownership (by shareholders) and control of the firm (by professional managers) .Which of the following practices would best help the company do this?

• A) Allowing employees to purchase the stock of the company at a discounted rate
• B) Reinvesting the annual profits of the company into research and development
• C) Issuing new additional shares to the existing stockholders in proportion to their current holdings
• D) Declaring the annual profits as bonus dividends to the existing stockholders

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Definitions:

Libido

A psychological term used to describe sexual desire or drive.

Psychosexual Development

A Freudian concept outlining how personality development takes place through stages during childhood, centered around the gratification of libidinal urges.

Fixation

An obsessive focus or attachment to a person, concept, or object, often stemming from unresolved developmental conflicts.

Striving for Superiority

A concept introduced by Alfred Adler, suggesting that a primary motivation for human behavior is the drive to overcome feelings of inferiority.