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Q 1/24
Score 0
arises from the conflict of interest between different parties of a business arrangement or transaction (e.g., stockholders and management)
30
market for corporate control
board of directors
agency cost
corporate governance
Q 2/24
Score 0
a group of persons elected by stockholders to oversee a corporation's management and managers
30
agency costs
market for corporate control
corporate governance
board of directors
24 questions
Q.
arises from the conflict of interest between different parties of a business arrangement or transaction (e.g., stockholders and management)
1
30 sec
Q.
a group of persons elected by stockholders to oversee a corporation's management and managers
2
30 sec
Q.
where ownership can be changed or exchanged between different parties
3
30 sec
Q.
the system of rules, practices and processes by which a company is directed and controlled
4
30 sec
Q.
refers to a situation in which high-ranking insiders use their own money to buy stock in the company they are running
5
30 sec
Q.
when an action by a more informed party is interpreted by others as a positive or negative indicator of underlying value
6
30 sec
Q.
a challenge that arises when one party, usually the seller, has more information regarding the quality of an asset, product or service than the buyer
7
30 sec
Q.
when a company buys back its own stock
8
30 sec
Q.
when a firm has difficulty meeting its debt obligations
9
30 sec
Q.
a legal process to get out of debt when you can no longer make all your required payments to creditors
10
30 sec
Q.
axtra money that a company has available in case of a downturn in sales, revenue, or profit
11
30 sec
Q.
acquisition of another company using a significant amount of debt, typically by a small group of investors
12
30 sec
Q.
says that when in "perfect" markets (i.e., no taxes, bankruptcy costs or asymmetric information), it makes no difference whether the firm borrows or individual shareholders borrow
13
30 sec
Q.
says that a firm chooses capital structure based on an optimal trade-off between tax savings and costs financial distress
14
30 sec
Q.
says that firms prefer to issue debt over equity if external financing is needed
15
30 sec
Q.
best mix of debt and equity financing that maximizes a company's market value while minimizing its cost of capital.
16
30 sec
Q.
describes financial contracts where capital is provided entirely by investors with an owernship share in the firm
17
30 sec
Q.
describes financial contracts where capital is provided partly by creditors and partly by investors with an owernship share in the firm
18
30 sec
Q.
an economically valuable right to make some choice that is available to the managers of a company
19
30 sec
Q.
diagram of sequential decisions and possible outcomes
20
30 sec
Q.
capital of a private corporation sold to the public in a new stock issuance
21
30 sec
Q.
a publicly traded company created for the purpose of acquiring or merging with an existing company
22
30 sec
Q.
investment in a project in which there is a substantial element of risk, typically a new or expanding business
23
30 sec
Q.
investment for a businesses start-up, usually in exchange for convertible debt or ownership equity
