Multiple Choice
A major conflict of interest between top executives and owners, is that top executives wish to diversify the firm in order to ____, while owners wish to diversify the firm to ____.
A) generate free cash flows, reduce the risk of total firm failure
B) increase the price of the firm's stock, increase the dividends paid out from free cash flows
C) reduce the risk of total firm failure, reduce their total portfolio risk
D) reduce their employment risk, increase the company's value
Correct Answer:
Verified
Correct Answer:
Verified
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