1. Which one of the following is an agency cost?
A. closing a division of a firm that is operating at a loss
B. Accepting an investment opportunity to add vale to the firm
C. paying financial incentives to management to keep shareholders' interest as top priority
D. increasing the quarterly dividend
2. Which of the following is not a basic for an offer in compromise?
a doubt as to collectability b. doubt as to liability c. reasonable clause d. effective tax administration.
3. DEF Corp. plans to issue new shares that will trade on the NYSE next month. If you buy a portion of these shares as soon as they're made available to the public, which of the following markets will you be participating in?
primary
secondary
over-the-counter dealer
none of the above