Why are corporate executives are often guaranteed "golden parachutes" if they should be fired?
a. To give them the incentive to take the higher levels of risk desired by stockholders.
b. To ensure that they exercise great caution in spending stockholders' money.
c. To encourage the most experienced people to apply for the executive positions.
d. To provide a signal to the public that the firm is on solid financial ground.
a. To give them the incentive to take the higher levels of risk desired by stockholders.
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DeShawn's Detailing is a service that details cars at the customers' homes or places of work. DeShawn's cost for a basic detailing package is $40, and he charges $75 for this service
For a total price of $90, DeShawn will also detail the car's engine, a service that adds an additional $20 to the total cost of the package. Should DeShawn continue to offer the engine detailing service? A) yes, but only if he raises the price of the basic detailing package B) No, his marginal benefit is less than his marginal cost. C) Yes, he still makes a profit by selling the engine detailing service with the basic detailing package. D) More information is needed for DeShawn to make this decision.
Relational contracts contract for every possible contingency
Indicate whether the statement is true or false