What are the major types of conflicts in a new venture? You may choose more than one option. Manager-shareholder conflicts Owner-debtholder conflicts Manager-debtholder conflicts Owner-manager conflicts Owner-shareholder conflicts Agency conflicts
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- Which partners in a business have limited risk only to their investment? a. General partners b. Limited partners c. Active partners d. International partnersWhich of the following case where the losses are to be shared by the partners in their profit sharing ratio? • a. Dissolution of Firm b. None of the options are correct c Profit and Loss d. Revaluation(a) What is Non-equity Strategic Alliance? Explain! (b) What are the advantages and disadvantages of Non-Equity Strategic Alliance? (discuss implications) (c) What are some examples of Non-Equity Strategic Alliance?
- Significant influence is Group of answer choices Deemed to exist when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. activities. The power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The power to govern the financial and operating policies of an entity so as to obtain benefits from itsWhat is the difference between a firm commintment underwriting arrangement and a best efforts arrangement?Describe some mechanisms that are used to solve the stockholder/bondholder agency conflict and the stockholder/manager conflict. How effective are each of these methods in accomplishing their goal? Why?
- What is the difference between joint venture & alliance with M&A ?What do you see as some of the possible problems if shareholder value is seen as a strategy (and not an outcome)?Identify the option that you would consider to be among the disadvantages of forming a limited company.a) Legal control and stringent requirements that have to be compliedb) The need to entrust control and decisions to a fewc) Restrictions on return of capital if in excess of company’s requirementsd) The ease with which the share of ownership could be disposed of Select one: A. b, c & d B. c & d C. a, b & c D. a, c & d
- What are the different financial risks in business acquisition and combination?Why is the Equity Valuation method is preferable from the point of view of an investor in valuing the business?Which of the following is an example of protective rights? Rights to appoint or remove another entity that directs the relevant activities The right of a party holding a non-controlling interest in an investee to approve the issue of equity or debt instruments Rights to veto any changes for the benefit of the investor All of the choices