What Is the Difference Between Control Rights and Cash Flow

question 4

Multiple Choice

What is the difference between control rights and cash flow rights?

• A)Since all shareholders benefit only from pro-rata cash flows, control rights and cash flow rights are the same thing.
• B)Large investors may be able to derive private benefits from control, thus control rights can exceed cash flow rights.
• C)Cash flow rights are more important than control rights since the only reason to invest in anything is to generate cash.
• D)None of the above

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Definitions:

Sampling Without Replacement

Once an element has been included in the sample, it is removed from the population and cannot be selected a second time.

Big Data

Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Volume

The amount of data generated.

Point Estimate

A single value estimate or guess of a population parameter based on sample data.