Which One of the Following Possible Conflicts of Interest Is

question 11

Multiple Choice

Which one of the following possible conflicts of interest is usually minimized through the use of equity incentives?

• A) owner-manager conflicts
• B) owner-employee conflicts
• C) manager-employee conflicts
• D) manager-debtholder conflicts

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Definitions:

Dividend Yield Ratio

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, often expressed as a percentage.

Market Price

The present cost at which a service or asset is available for purchase or sale.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue, indicating how effectively assets are utilized.

Generate Sales

The activity of creating or increasing revenue through the sale of goods or services.