In Many Countries with Concentrated Ownership

question 13

Multiple Choice

In many countries with concentrated ownership

• A)the conflicts of interest between shareholders and managers are worse than in countries with diffuse ownership of firms.
• B)the conflicts of interest are greater between large controlling shareholders and small outside shareholders than between managers and shareholders.
• C)the conflicts of interest are greater between managers and shareholders than between large controlling shareholders and small outside shareholders.
• D)corporate forms of business organization with concentrated ownership are rare.

Assess the regressive nature of certain taxes and identify exceptions.

Understand the basic concepts of tax incidence and how taxes affect market equilibrium.

Identify and distinguish between progressive, regressive, and proportional tax schedules.

Analyze the impact of price elasticity on the distribution of tax burdens between buyers and sellers.

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Definitions:

Basic Accounting Equation

An equation representing the relationship between a company's assets, liabilities, and equity (Assets = Liabilities + Equity).

Claims

Claims are demands or requests for payment or compensation for a loss or injury under an insurance policy, contract, or legal right.

Changes in Equity

Changes in equity refer to the adjustments in the value of a company's equity over a specific period due to transactions with owners, issuance or repurchase of shares, profits or losses, and dividends.

Statement of Income

A financial document that shows a company's revenues, expenses, and profits over a specific period, highlighting the company's operating performance.