Answer the following questions.a) Discuss the advantages and disadvantages of the following forms of managerial com-pensation in terms of mitigating agency problems, that is, potential conflicts of interestbetween managers and shareholders.(i) A fixed salary.(ii) Stock in the firm that must be held for five years.(iii) A salary linked to the firm's profits.b) (i) Why are many bonds callable? What is the disadvantage to the investor of acallable bond? How are bond values affected if bonds are callable?(ii) If you are buying a coupon bond between interest paying dates, is the amount youwould pay to your broker for the bond more or less than the amount quoted in thefinancial quotation pages? Discuss the differences and how these differences arise.c) What are some advantages and disadvantages of top-down versus bottom-up investingstyles?

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Answered: a) Discuss the advantages and…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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1. Goldie and Hattie want to develop real estate and want to organize it under their state's Revised Uniform Limited Partnership Act. (a) Please advise Goldie and Hattie about what they will need to create and capitalize their partnership. (b) What advantages does the limited partnership business form offer to them over the general partnership? (c) What should Goldie and Hattie expect about their personal liability and tax situation?
Describe the concept of corporate social responsibility(CSR) and its relevance to contemporary management
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