Which of the following statements is TRUE? a. Agency problem involves the enrichment of the firm's shareholders at the expense of the company's managers. Ob. One major benefit of a corporation is that its earnings are exempt from double taxation. O c. A compensation plan that includes a salary plus stock options maturing in phases over a period of time can motivate the CEO to consistently maximize shareholder wealth. d. Owners of a limited liability company (LLC) or a limited liability partnership (LLP) have unlimited personal liability for the debts and actions of the company.
Which of the following statements is TRUE? a. Agency problem involves the enrichment of the firm's shareholders at the expense of the company's managers. Ob. One major benefit of a corporation is that its earnings are exempt from double taxation. O c. A compensation plan that includes a salary plus stock options maturing in phases over a period of time can motivate the CEO to consistently maximize shareholder wealth. d. Owners of a limited liability company (LLC) or a limited liability partnership (LLP) have unlimited personal liability for the debts and actions of the company.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Which of the following statements is TRUE?
a. Agency problem involves the enrichment of the firm's
shareholders at the expense of the company's managers.
O b.
One major benefit of a corporation is that its earnings are
exempt from double taxation.
C.
A compensation plan that includes a salary plus stock
options maturing in phases over a period of time can
motivate the CEO to consistently maximize shareholder
wealth.
d.
Owners of a limited liability company (LLC) or a limited
liability partnership (LLP) have unlimited personal liability for
the debts and actions of the company.
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