1. Ghosal would argue what:
a. shareholder own the residual cash flows, but not the company per se.
b. The notion of actual ownership of the company is simply not compatible with responsibility avoidance of "limited liability"
c. The reason that economists focus on shareholder wealth is that this assumption helps in structuring and solving nice mathematical models
d. Agency Theory has been proven.
e. Potential conflicts between owner and managers is resolved by offering managers stock options.
2. A Wall Street Journal poll asked 2,150 adults in the United States a series of questions to find out their view on the U.S. economy. Referring to Table 1-2, the possible responses to the question "How many people in your household are unemployed currently?" result in a :
a. nominal scale variable.
b. an ordinal scale variable.
c. an interval scale variable.
d. a ratio scale variable.