Internal Governance Mechanisms Include

question 42

Multiple Choice

Internal governance mechanisms include
I..ownership structure
II..legal system

• A) only I
• B) only II
• C) either I or II
• D) neither I or II

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Definitions:

Risk-Free Asset

An investment that is expected to return its original value without any loss, theoretically free from default risk.

MRS

Marginal Rate of Substitution, the rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at fixed prices.

Expected Percentage Return

The predicted return on an investment, expressed as a percentage of the initial investment.