Which of the following is one of the implications of information asymmetry between principals and agents?

Which of the following is one of the implications of information asymmetry between principals and agents? Principals tend to be better informed than the agents, and thus will avoid delegating decision-making authority to their agents.

Which of the following statement is true of shareholders in a public stock company?

Which of the following statements is true of shareholders in a public stock company? Shareholders who provide the risk capital are liable only to the capital specifically invested. What does “limited liability for investors” imply in a public stock company?

Which of the following is a recommended guideline for the composition of a board of directors to implement corporate governance quizlet?

Which of the following is a recommended guideline for the composition of a board of directors to implement corporate governance? Close to two-thirds of the board of directors should consist of outside directors.

Which of the following is a characteristic of a public stock company?

The characteristics of a public company are that they are limited by shares and have limited liability. ‘Limited by shares’ means that shares in the company can be bought and sold freely (shares are featured in the stock-exchange).

Why did the San Francisco’s Metro Transit Authority?

Why did the San Francisco’s Metro Transit Authority (MTA) order Uber to cease and desist? – MTA argued that Uber failed to comply with the emission standards for vehicles. MTA argued that Uber was operating a taxi service without proper licensing.

Why do principal-agent problems arise in representative democracies?

In a representative democracy, principal-agent problems arise when: Politicians have goals such as re-election that may be inconsistent with pursuing the best interests of their constituents. attempts to use changes in interest rates to regulate the economy.

Why do shareholders of public companies need to appoint a board of directors to represent their interests?

Why do shareholders of public companies need to appoint a board of directors to represent their interests? is likely to provide the board with valuable inside information.

Which of the following best explains why Gulf airlines are giving US legacy carriers stiff competition?

Which of the following best explains why Gulf airlines are giving U.S. legacy carriers stiff competition? The Gulf carriers offer better service for lower costs than do the U.S. legacy carriers.

How is a public company formed what are its main features?

Features of a Public Limited Company. Paid-up Capital – There is no requirement of a minimum paid-up capital. Hence, you can incorporate a public company with any amount of capital. Minimum number of Directors – You need a minimum of 3 directors to incorporate a public company with a maximum of 15 directors.

What is the advantage of being a public limited company?

The main advantages of a being public limited company are: Better access to capital – i.e. raising share capital from existing and new investors. Liquidity – shareholders are able to buy and sell their shares (if they are quoted on a stock exchange.