The agency problem may result from a manager's concerns about ________

Shamba Corporation writes cheques that average $90,000 and take on average 5 days to clear. Cheques are received with an average value of $45,000 and take 9 days to clear. Determine the net float.

A) $135,000 B) $855,000 C) $60,000 D) $45,000

Forecasting inconsistencies can be minimized by:

A) establishing a standardized economic forecast to be used year in, year out. B) generating current economic forecasts that are used throughout the firm. C) extending the current forecast into the future. D) allowing managers to establish their own forecasts.