Question: In some countries, such as Japan and Germany, corporations develop close long-term relationships with one bank and rely on that bank for a large part

In some countries, such as Japan and Germany, corporations develop close long-term relationships with one bank and rely on that bank for a large part of their financing needs. In the United States, companies are more likely to shop around for the best deal. Do you think that this practice is more or less likely to encourage ethical behavior on the part of the corporation?

Step by Step Solution

★★★★★

3.60 Rating (182 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Longterm relationships can encourage ethical behavior If y... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

968-B-C-F-B-V (1189).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

In a private insurance market, there are two different kinds of people: some who are more likely to require expensive medical treatment and some who are less likely to require medical treatment and...

Review the concept of externalities from Chapter 5, page 148. If a market is a monopoly, will a negative externality in production always lead to production beyond the level of economic efficiency?...

1. What important internal controls were ignored when LJM1 was created? 2. How might Enron's harsh Performance Review Committee have aided company executives in committing the fraud? 3. The fraud at...

When a company's stock is widely held, it may not pay an individual shareholder to spend time monitoring the manager's performance and trying to replace poor management. Explain why. Do you think...

36. Ethics. In some countries, such as Japan and Germany, corporations develop close long-term relationships with one bank and rely on that bank for a large part of their financing needs. In the...

26. Ethics. In some countries, such as Japan and Germany, corporations develop close long-term relationships with one bank and rely on that bank for a large part of their financing needs. In the...

Ethics. In some countries, such as Japan and Germany, corporations develop close long-term relationships with one bank and rely on that bank for a large part of their financing needs. In the United...

Can you please help me solve these 10 Econ questions? I also attached the chapter just in case. Thanks so much!! :) MARKETS AND HOW THEY WORK 177 9.0 CHAPTER 9 LEARNING GOALS After reading this...

(1) The Quality of Financial Information Referencing this week?s readings and lecture, describe the quality issues related to reporting revenue. What is the importance of understanding various...

Questions Read the case: Jess Westerly at Kauflauf GmbH Write a synopsis of the case. Identify central and satellite problems. Why did Westerlys initial attempt to change sales patterns fail. Refer...

Determine the dimension of the space spanned by the set 8 0000 2 8 S = Determine the dimension of the space spanned by the set S= 3 2 (100) 3 3

Risk and Return. True or false? Explain or qualify as necessary. a. Investors demand higher expected rates of return on stocks with more variable rates of return. b. The capital asset pricing model...

The statement of cash flows must be prepared on a daily basis. is a special section of the income stati - ment. is another name for the income statement. summarizes the operating, financing and...

5.6 Suppose that the following table gives data on the price of rye and the number of bushels of rye sold in 2015 and 2016: a. Calculate the change in the quantity of rye demanded divided by the...

On a mountain trek, you discover a 6-ounce gold nugget. A friend offers to pay you $2,500 for it. How do you check whether this is a fair price?

What kinds of useful information can a financial manager obtain from financial markets? Give examples.

Look back at Section 2.3 and then answer the following questions: a. The price of Estee Lauder stock has risen to $90. What is the market value of the firm's equity? b. The rating agency has revised...

Firms U and L are identical except that Firm U is financed with 100% equity while Firm L has $10 million of 5% bonds. Assume that all of the MM assumptions are met, EBIT is $2 million and the cost of...

Global Toys. Inc imposes a payback cutoff of three years for its international investment projects Assume the company has the following two projects available Requirement 1: What is the payback...

A portfolio comprises Coke (beta of 1.5) and Wal-Mart (beta of 0.9). The amount invested in Coke is $20,000 and in Wal-Mart is $20,000. What is the beta of the portfolio? O A. 1.1 OB. 1.32 O C. 1.2...