Question

Commodity and derivative markets allow firms to adjust their _________. A. management styles B. focus from...

Commodity and derivative markets allow firms to adjust their _________.

A.

management styles

B.

focus from their main line of business to their investment portfolios

C.

ways of doing business so that they’ll always have positive returns

D.

exposure to various business risks




Methods of encouraging managers to act in shareholders’ best interest include:

I. Threat of takeover.

II. Proxy fights for control of the board of directors.

III. Tying managers’ compensation to stock price performance.

A.

I only

B.

I and II only

C.

II and III only

D.

I, II, and III

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Answer #1

1.D.exposure to various business risk.

commodity and derivative markets allow firms to adjust their exposure to various business risks.

2.D.I, II and III.

methods of encouraging managers to act in shareholders best interest include

Threat of takeover

Proxy fights for control of the board of directors

Tying managers compensation to stock price performance.

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