Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Option #1: After reading the Creative Mentorship and Career-Building Strategies book, write an APA-style essay about your virtual personal board of directors. In 4 - 6 pages, provide specific information about a few of the roles/players you would include, how you would build your board, and how you would leverage your board. Be specific in regards to ways your board will help you reach your career goals.
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- Answer the following questions. a) Discuss the advantages and disadvantages of the following forms of managerial com- pensation in terms of mitigating agency problems, that is, potential conflicts of interest between managers and shareholders. (i) A fixed salary. (ii) Stock in the firm that must be held for five years. (iii) A salary linked to the firm's profits. b) (i) Why are many bonds callable? What is the disadvantage to the investor of a callable bond? How are bond values affected if bonds are callable? (ii) If you are buying a coupon bond between interest paying dates, is the amount you would pay to your broker for the bond more or less than the amount quoted in the financial quotation pages? Discuss the differences and how these differences arise. c) What are some advantages and disadvantages of top-down versus bottom-up investing styles?arrow_forwardYour clients, Jim and Darryl, has come to you for advice on how to set up their business. They have stated that they are looking for a structure that meets the following needs: Jim and Darryl will both participate in the business equally and share the profits. They are open to the idea of having shareholders, but it is not a requirement. They are certain they want protection from personal liability for all owners. Eventually they want to expand the business. When they do so, they do not want a limit on the number of owners they can have. They also do not want to limit the types of owners they can have. Meaning they would like the ability to have owners be individuals, businesses, trusts, foreign investors etc. If possible, they would like to avoid double taxation. They have a lawyer who will help them with any paperwork related to the formation of their business, so complexity of formation is not a major concern. This is for the United States.arrow_forward
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