Are institutional investors part of the problem or part of the solution in case of agency
problem’- Analyze with possible scenarios in both cases.
if company’s board of directors wants to management to maximize share holder wealth, should the managers’ compensation be set as a fixed dollar amount, or should the compensation depend on how well the firm performs?
Utilities (Services Business) hold 10 percent of total assets in current assets; retail trade industries hold 60 percent of total assets in current assets. Explain how industry characteristics account for this difference.