Why Is It Rational to Make Shareholders "Weak" by Giving

question 93

Multiple Choice

Why is it rational to make shareholders "weak" by giving control to the managers of the firm?

• A)This may be rational when shareholders may be neither qualified nor interested in making business decisions.
• B)This may be rational since many shareholders find it easier to sell their shares in an underperforming firm than to monitor the management.
• C)This may be rational to the extent that managers are answerable to the board of directors.
• D)All of the above are explanations for the separation of ownership and control.

Understand the different methods of patient instruction and communication to enhance understanding and compliance.

Identify the equipment and their purposes in patient examinations.

Appreciate the importance of patient comfort, safety, and privacy during examinations.

Understand the variety of examination positions and their purposes.

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Definitions:

Offer

A proposal by one person to another that is intended to create legal relations on acceptance by the person to whom it is made.

Void Contract

A contract that has no legal force or effect and cannot be enforced by either party.

Legal Obligations

Duties imposed by law requiring individuals or organizations to comply with legal standards and regulations.

Operation of Law

Changes in legal status or rights triggered automatically by law, not requiring action by individuals.