Multiple Choice
A major conflict of interest between top executives and owners, is that top executives wish to diversify the firm in order to ____, whereas 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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