Which of the following represents a serious concern for those firms employing the Baumol model of cash management?
A) a volatile rate of cash disbursements
B) high interest-rate risk
C) low rates of return on treasury bills
D) market illiquidity when selling bills
Ans: A) a volatile rate of cash disbursements
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By referring to a new employee as "young and energetic," what kind of bias is being used?
A) Gender bias B) Age bias C) Racial bias D) Disability bias E) Ethnicity bias
What is the most common way that agency conflict problems are addressed in most corporations?
A) by minimizing the number of decisions that a manager makes where there is a conflict between the managers interests and those of the shareholders B) by terminating the employment of employees who are found to have put their own interests above those of the company C) by using disinterested outside bodies to adjudicate between managers and shareholders when such conflicts arise D) by prosecuting managers who have been found to have illegally used company moneys for their own benefit