Question: Question 5: Short Answer: (1) What cautions must you exercise when you conduct ratio analysis? (Hint: Identify and discuss some weaknesses of ratio analysis.) (2)

Question 5: Short Answer:

(1) What cautions must you exercise when you conduct ratio analysis? (Hint: Identify and discuss some weaknesses of ratio analysis.)

(2) What is agency problem? Give an example of agency problem in a corporate setting. Discuss how agency problem be controlled.

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