corporate governance
Q: Risk in the widest sense is not new to business. All companies are exposed to traditional business…
A: The process of recognising, assessing, and accepting or limiting uncertainty in investment decisions…
Q: How are conflicts between the shareholders and the management created? Which of the following is…
A: Conflicts between the shareholders and the management majorly arise due to the differences in…
Q: Which of the following statements is CORRECT? One of the ways in which firms can mitigate or…
A: One of the ways in which firms can mitigate or reduce potential conflicts between bondholders and…
Q: Which of the following statements is true? * Restrictive covenants in debt agreements are an…
A: A business is an organization entirely made for earning profits or for fulfilling social needs by…
Q: 44 The board of a major bank is discussing their investment appraisal methodology as they have a…
A: The Capital Asset Pricing Model (CAPM) dictates a model which states the how the securities are…
Q: The board of a major bank is discussing their investment appraisal methodology as they have a new…
A: The beta of the new project = 1.52 Return on short-dated gov security = Risk free rate = 5.2%…
Q: 41. The board of a major bank is discussing their investment appraisal methodology as they have a…
A: Capital asset pricing model = risk free rate + Beta (market return - risk free rate of return)
Q: Managers owning a small proportion of a firm's equity can be expected to work less, maintain more…
A: The owners or shareholders and the management team are different in a company. Ideally, managers…
Q: Which of the following is NOT related to (or contributes to) business risk? Remember that a…
A: Business risk refers to a company's or organization's vulnerability to factors that could reduce…
Q: Select the INCORRECT statement: The aim of ensuring good corporate governance is... Select one:…
A: The incorrect statement is Prosecute shareholders for allowing high risk business decisions that…
Q: 9. The financial organization's perceived level of risk falls, due perhaps to (perhaps because it…
A: When the organization diversifies its investment then there is a broad perception that the overall…
Q: How does a profitable capital market help reduce the prices of goods and services?
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: Q7. Khadi and Village industries, being a part of MSME, were facing some issues related to sales…
A: The term working capital management refers to the relationship between short term assets &…
Q: 6. Business risk is that type of risk in which: a) The company is unable to meet its financial…
A: Types of risk consist of financial risk, operational risk and business risk.
Q: Which of the following is a false statement concerning the market value of a company? All…
A: If the investors are expected ROE is higher then it will lead to greater market value because if ROE…
Q: Low-dividend clientele are preferred by firms because . A. they pay more money per…
A: To get maximum earning is the main goal of every investor.
Q: Company insiders who can earn excess profits on company stock based on their private knowledge…
A: Stock price depends on the information. As people get information, they start pricing the stock…
Q: Which of the following statements is true? a. Restrictive covenants in debt agreements are an…
A: A business is an organization entirely made for earning profits or for fulfilling social needs by…
Q: Which of the following statements is/are INCORRECT? O 1) Takeover threats tends to affect managerial…
A: Corporations have double taxation problems: The given statement is true as the income id once…
Q: Which of the following statements is NOT true about Initial Public Offerings? A. An IPO occurs when…
A: Initial public offerings are the shares issued by private company for the first time to get itself…
Q: Finance Which one of the following statements is not correct? a) Market timing theory argues that…
A: The wrong statement is b) According to static trade-off theory agency costs of equity increase when…
Q: Why the limitation of portfilio analysis is it naively following the prescriptions of a portfolio…
A: In general, small businesses will offer only one product or service. But as the expansion of…
Q: Which of the following situations would compel the management of a company to embark on a capital…
A: The share capital is the amount of capital raised by the company through the issue of shares.
Q: If corporate managers are risk averse, does this mean that they will not take risks? If you were a…
A: Capital budgeting is a tool or technique to analyzed the projects that projects are profitable or…
Q: A corporation may incur agency costs because: A. Managers may not attempt to maximize the value of…
A: Dear student as per Bartleby answering guidelines we can answer only the first question if a student…
Q: Which of the following statements is FALSE? By tying compensation to performance, shareholders aim…
A: A dispute arising when people (the agents) delegated to look after the benefits of others (the…
Q: The success of any organization heavily depends on the efficiency of the corporate governance. The…
A: A company's governance and control are governed by a set of laws, policies, and procedures known as…
Q: If the stock market is efficient, why do companies manage their earnings? O To avoid violating debt…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Which of the following is most consistent with using debt to reduce agency costs or conflicts?…
A: Statement number 4 is consistent with using debt to reduce agency costs or conflicts.
Q: Balance sheet is known to be one of the very popular financial statement of the company that shows…
A: Balance Sheet - To summarize the balance sheet mentioned formula will helpful. i.e. Assets =…
Q: TRUE or FALSE: Managers always attempt to maximize the long-run value of their firms' stocks, or…
A: Stockholders and managers are two important terms for the company but both are different.…
Q: Explain Limitations that have caused some companies to reduce their use of portfilio analysis. 1.…
A: Portfolio analysis is the analysis of the overall portfolio by calculating the mean , standard…
Q: Which of the following statements is/are INCORRECT? O 1) Takeover threats tends to affect managerial…
A: Bondholders: These are the investors that invest in a company by purchasing the bonds issued by that…
Q: 65. The finance manager of ABC Co. approves the financial statements that has an overstated net…
A: Financial statements are the result of whole accounting process, under which all transactions are…
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- What types of firms would we expect to observe higher direct agency costs of equity, such as consuming excessive perquisites by management ? Question 7 options: a) Firms with high free cash flows b) Firms with fewer growth opportunities c) Firms with weak governance structures d) All of the above options are correct e) None of the options are correctIt is an axiom that may be characterized by managers making decisions that conflict with the best interest of the shareholders. a. the risk-return trade-off b. the agency problems c. the curse of competitive markets d. stockholders versus managersWhich of the following statements is/are INCORRECT? O 1) Takeover threats tends to affect managerial behavior. 2) Corporations have the double taxation problem. O 3) Compensating managers with more stock options and less cash income can reduce the conflicts of interest between bondholders and managers. O 4) Both a and c are incorrect. 5) Both b and c are incorrect.
- 11. Which of the following security holders receives a lower returns with low risk? . T-Bill B. Common shareholders C. Stakeholders D. Creditors 12. The advantage of a company compared a sole trader as form of business organisation is: A. Quick decision making B. Access to external professional management skills C. Use of own funds D. Inability to access external funds Thank you!!!Market failures can be attributed to the inability of the both the public and private sectors to do good governance. * TRUE FALSE17. Which of the following is not a reason why companies are not always entirely clear on their dividend policy? A. For fear of giving away sensitive information. B . In order to maintain a managerial advantage over shareholders. C. Because they do not know how much is available for dividends. D. Companies have different abilities to communicate
- 1.Why the limitation of portfilio analysis is it naively following the prescriptions of a portfolio model may actually reduce corporate profits if they are used inappropriately?Is there a good argument against giving long-term shareholders more say in running a corporation? Briefly explain. A. Giving long-term shareholders more influence would give the board of directors too much power. B. Long-term shareholders may place more emphasis on costs rather than generating revenue. OC. Giving long-term shareholders more say could limit the ability of other investors to discipline corporate managers who fail to use profit-maximizing strategies. D. It could be argued that giving long-term shareholders more say could attract too many outside investors.A Moving to another question will save this response. Question 6 According to the risk shifting (or asset substitution) hypothesis Shareholders are keen to take excessively risky projects as they do not internalize the negative externality to bondholders O Firms should never pay dividends O Companies become too conservative in their investment when debt levels are such that bankruptcy is a likely outcome O It is always optimal to reduce leverage as this reduces expected bankruptcy costs A Moving to another question will save this response. ipeg WhatsApp Image..jpeg WhatsApp Image.jpeg WhatsApp Image...jpeg WhatsApp Image..jpeg WhatsApp Im. Shot on vivo Z1x 00 16°C Mostly cloudy WIDE Vivo Al camera
- State whether the following statements are true or false. 8) Trade-Off between Risk-Return is the main principle to maximize the firm value. 9) Reduce inventory and use the proceeds to pay off a part of current liabilities will lead to increasethe quick ratio. 10) Unethical Behavior of the manager includes using the information that not available to the publicto make money.11. A corporation may incur agency costs because: A. Managers may not attempt to maximize the value of the firm to shareholders.B. Shareholders incur monitoring costs.C. All of the responses are correct.D. Of the separation of ownership and management. 12. A firm's investment decision is also called its A. liquidity decision.B. financing decision.C. leasing decision.D. capital budgeting decision. 13. A corporation, potentially, has infinite life because it A. has the same ownership and management.B. is a legal entity.C. is closely regulated.D. has limited liability.Explain Limitations that have caused some companies to reduce their use of portfilio analysis. 1. Naively following the prescriptions of a portfolio model may actually reduce corporate profitsif they are used inappropriately.