What is the residual claimants view of equity holders?
What will be an ideal response?
The residual claimants view is that equity holders only receive payment on their investment in a firm after all legitimate claims by a firm's other stakeholders are satisfied. This view posits that by maximizing returns to its equity holders, a firm is ensuring that its other stakeholders are fully compensated for investing in a firm.
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When Daimler and BMW pooled resources to develop standardized auto components, the sourcing strategy could best be described by which of the following?
A) keiretsu B) virtual companies C) joint venture D) vertical integration E) few suppliers
Why is a shifting interest mechanism included in a securitization where the collateral is residential mortgage loans?
What will be an ideal response?