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1.Branch-typed business organization is a strategic alliance made between a bran

ID: 2793201 • Letter: 1

Question

1.Branch-typed business organization is a strategic alliance made between a branch manager and executive managers in the headquarter True False A conflict of interest between professional managers and owners is that owners wish to diversify the firm in order. to, whereas professional managers wish to diversify the firm to C a. reduce the risk of total firm failure; generate free cash flow C b. increase the dividends paid out from free cash flow; increase the price of the firm's stock C c. reduce their total portfolio risk, reduce the risk of total firm failure O d. increase the company's value; reduce their employment rislk o goveat eget f iewk moefetivety C a. the CEO is also the chairperson of the board of directors. O b. the board includes employees as voting members C C. the board is homogeneous in composition C d. outside directors own significant equity in the organization

Explanation / Answer

1)true
2)option D, since it is agency problem and both managers and owners will have different points of interest
3)option B