Answer the following questions true (T) or false (F)
1. Corporate governance refers to the way in which a corporation is structured and the effect that structure has on the corporation's behavior.
2. Corporate managers and shareholders do not always have the same goals.
3. Tying salaries of top managers to the profits of the firm is a way to reduce the effect of the principal-agent problem.
1. TRUE
2. TRUE
3. TRUE
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Health care debates illustrate how special interest groups can use their lobbying power to "control" the federal government to transfer wealth from one group of productive, income earning individuals to another group that may or may not be
productive. Indicate whether the statement is true or false
An international agreement established in 1947 to further world trade by reducing barriers and tariffs is the
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.