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the reward for innovation is extensive b. The residual claims that stockholders have against a firms assets, calculated by subtracting total liabilities from total assets. As opposed to the market system, in command economics: a. the directing and guiding function of prices 7. that the concept of derived demand is inapplicable c. This means that if the company goes bankrupt and sells its assets, the creditors and others are. that consumer sovereignty is inoperative in this economy b. If you have common shares, you have a residual claim to assets. Assume the demand for production Y increases and the subsequent market system responses result in the production of more Y. of the role of consumers in determining what goods are produced 6. the prices of consumer goods are regulated by government c. a large number of consume goods are produced b. The market system is said to be characterized by "consumer sovereignty". however, franchise contracts normally entail residual claimant status for franchisees whereas the compensation of managers of company units in franchised chains. How will the system accommodate change b. Which fundamental question about competitive market system primarily focusses on technological progress and capital accumulation? a. money market through borrowing and saving by households and businesses 4. private sector through the earning and spending income c. business sector through the mechanism of advertising b.
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For whom is a given mix of goods and services produced? How, in other words, is the product to be distributed among people when such commodities and services are available? In a market economy, this problem is resolved primarily in the: a.
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can be obtained for the smallest amount of money outlay 3. comes closest to using the same quantities of land, labour, capital and entrepreneurial ability C. the most efficient combination of resources in producing any output is that combination which: a.
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In that sense, residual claimant analysis is better understood as a theory for the stakeholder model of the firm than the shareholder primacy model, as it is presently understood.1. When given the chance to choose a less or more risky distribution over which to bargain, residual claimants tend to choose the more risky distribution only when. This history shows that the prevailing view of shareholders as the exclusive residual claimants of the corporation is a relatively recent understanding and that the historical record supports a more diverse conception of the residual claimant. Depending on which of the theories of rent, interest, wages, or profit was adopted, each of the landlord, capitalist, laborer, and entrepreneur has been considered the residual claimant of the corporation. Do not medically defer the claim when an allowance is appropriate if the evidence clearly indicates little or no chance of recovery. However, a review of the origin and history of residual claimant theory shows that the theory originally envisaged a broad conception of the residual claim that goes beyond profits, leading to a diverse array of stakeholders being the residual claimants of corporations over time. Evaluate evidence of any residual impairment(s) at more than 3 months following a CVA, unless the claimant demonstrates an unusually rapid recovery. Based on this understanding, shareholders are entitled to a host of corporate law rights and protections-including the right to vote and fiduciary duty protections. The conventional understanding in corporate law is that shareholders are the residual claimants of corporations because they own the residual right to profits. If some of the parties involved receive fixed amounts of value specified by a con- tract and there is only one residual claimant, then maximizing the value.
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