Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?

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Question 1

 

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Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers? ________

 A.  

articles of incorporation

 

 

 

B.

 

  

corporate breakdown

 

 

 

 

C.

 

  

agency problem

 

 

 

 

D.

 

  

bylaws

 

 

 

 

E.

 

  

legal liability

 

Question 2

 

Which one of the following is a capital budgeting decision?

 

 

A.

 

  

determining how many shares of stock to issue

 

 

 

 

B.

 

  

deciding whether or not to purchase a new machine for the production line

 

 

 

 

C.

 

  

deciding how to refinance a debt issue that is maturing

 

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