The principal-agent problem of ownership vs. control of the corporation tends to get worse when
A) stock in a corporation is held exclusively by a small number of people who control the company's day-to-day operations.
B) stock in the company is tightly held, but there are some "outsider" stockholders.
C) stock in the company is very diffusely held, with no individual or group having control over a large block of stock.
D) managers have profit-sharing schemes as part of their incentive package.
E) managers focus on maximizing the firm's profits, rather than the firm's market share.
C
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How are the fundamental economic decisions determined in Canada?
A) Individuals, firms, and the government interact in a market to make these economic decisions. B) These decisions are made by the country's elders who have had much experience in answering these questions. C) The government decides because Canada is a centrally planned economy. D) The United Nations decides because Canada is a developing economy.
The top quintile of income earners would be those whose income is
A. in the highest 20 percent. B. in the lowest 20 percent. C. higher than the lowest 20 percent of households. D. in the highest 5 percent.