Question

Which of the following statements is most appropriate? Explain

A. In a joint-stock company, the issue of conflict of interest between the owner and the operator sometimes occurs.

B. The type of joint stock company is a suitable choice in business because it is not taxed twice on income.

C. The typical type of enterprise selected for research in corporate finance is a joint stock company because it has characteristics that other types of businesses do not have, which is the separation between ownership and operation.

D. It is easy to resolve conflicts of interest between owners and operators, by increasing operator salaries

Answer 1

A. In a joint-stock company, the issue of conflict of interest between the owner and the operator sometimes occurs.