Gamma Corp

question 35

Multiple Choice

Gamma Corp.has recently bought stocks in an under performing company that has failed to maximize stockholder wealth.Gamma Corp.has made changes to the top management structure of the company and has persuaded the management to pursue strategies that maximize the wealth of stockholders.Gamma Corp.has been able to earn millions by doing so.Which of the following concepts is illustrated in this scenario?

• A)Greenmail
• B)Agency theory
• C)Information asymmetry
• D)Self-dealing
• E)On-the-job consumption

Distinguish between express, implied in fact, and quasi contracts based on how agreement is manifested.

Know the requirements for a binding contract, including mutual assent, consideration, legality of object, and contractual capacity.

Identify the governing laws for different types of contracts (goods, services, employment).

Understand the principles of enforceability for noncontractual promises based on justifiable reliance.

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Definitions:

Skewed

A description of data that are not symmetrically distributed around the mean, often indicating a longer tail on one side of the distribution.

Parameter

In statistical analysis, a parameter is a quantity that characterizes a certain aspect of a population or a model.

Statistic

A number that describes a characteristic of a sample, derived from the data that the sample contains.

Range

The difference between the highest and lowest values in a dataset.