Which of the following statements is not consistent with agency theory?

A) Managers are employed to conduct business on behalf of the shareholders.
B) Managers have a legal and fiduciary duty to act in the best interests of the shareholders.
C) Managers are more likely to favour the interests of lenders in managing debt contracts.
D) Costs are incurred in monitoring and controlling agent's behaviour.

Ned's Co. has an average collection period of 45 days and an operating cycle of 130 days. It has a policy of keeping at least $10 on hand as a minimum cash balance, and has a beginning cash balance for the first quarter of $20. Beginning receivables for the quarter amount to $35. Sales for the first and second quarters are expected to be $110 and $125, respectively, while purchases amount to 80% of the next quarter's forecast sales. The accounts payable period is 90 days. What are cash disbursements for the first quarter?

A) $76
B) $88
C) $92
D) $100
E) $110

An effective team is defined as one that ___.

A) achieves and maintains high levels of task performance
B) achieves and maintains member satisfaction
C) remains viable for the future
D) all of the above
E) none of the above

A company pledges their receivables so they may

A) Collect a pledge fee.
B) Borrow money.
C) Charge a factoring fee.
D) Increase sales.
E) Recognize a sale.

A/An ______ is a neutral third party who is informally assigned to persuade opponents to communicate, and may informally offer an opinion even though the opinion is not legally binding.

A) mediator
B) arbitrator
C) intermediary
D) conciliator

Tariffs and quotas do not have an affect on pricing strategies because these are government-instituted policies.

Suppose purchases do not occur because the value of the good to the potential seller exceeds the value to a potential consumer.This situation will occur in:

A) a market dominated by government regulation.
B) well-functioning markets.
C) a market made up of many buyers and sellers.
D) a centralized market system.