CFA Practice Question

There are 201 practice questions for this study session.

CFA Practice Question

Which factor is the main reason that private companies may take a longer term perspective when developing company strategies?

A. Stage in lifecycle.
B. Overlap of shareholders and management.
C. Quality of management.
Correct Answer: B

Agency issues may be mitigated in private companies as top management usually has a controlling ownership interest.

Another such factor is less stock price performance pressure.

User Contributed Comments 1

User Comment
quanttrader not accountable to shareholders
You need to log in first to add your comment.