Question

Question 2 (1 point) A major cost of the separation of ownership and control of corporations is that the managers of the corporation may sometimes act in their own best interest as opposed to shareholders interests. What can shareholders do to discipline self-interested managers? ISELECT ALL THAT APPLY.] sell shares to push down the stock price reduce their pay (fine them) vote to replace the board of directors who dan replace them fire ther Question 3 (1 point) he matching principle states that 1 sales should be recorded when the earnings process is virtually completed and the value of the sale can be determined 2) sales should be recorded when the payment for that sale is received o the costs of producing an item should be recorded when the sale of that item is 4 5) costs should be recorded when pa recorded as revenue costs should be recorded on the income statement whenever those costs can be reliably determined.

Answer 1

Answer to Question 2,

When ever the managers are acting against the interest of the owners, the owners/share holders can make notice to thae management and the management can fire them or fine them by reducing the pay. the management is not accepting the points raised by the owners, they can remove the board of directors. So in this case the 3 point will be applicable except 1st point.

Answer to Question 3,

Matching prinipple means the expense should be recorded if the revenue relating to that expense is booked/ recorded. so in the scenario explained in the situation is 3rd point ( Cost of producing an item should be recorded when the sale of that item is recorded as revenue)

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