Chapter 1--An Overview of M

Which of the following statements concerning agency

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49. Which of the following statements concerning "agency problems" is most correct? A. Regardless of economic conditions, if a firm's stock price falls during the year, this indicates that the firm's managers must not be acting in the best interests of the shareholders. B. One method of controlling agency problems is to engage in the taking of "poison pills." C. One of the best means to control agency problems is to require the managers and other important decision makers of the firm to also be owners of the firm. D. Agency problems probably would not exist if the important decisions of a firm were made by persons who have no vested interests , such as ownership, in the firm. E. None of the above is a correct statement.
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50. Which of the following statements concerning a firm's quest to maximize wealth is correct? 51. The 11 "titles" in the Sarbanes-Oxley Act of 2002 establish standards for accountability and responsibility of financial reporting information for major corporations. Which of the following activities does the act not provide rules that a corporation must abide by?
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  • Spring '10
  • Patterson
  • Finance, Corporation, Firm

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