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1. The following financial statement information is known about five separate proprietorships: Company Company Company Company Company A B C D E December 31, 2001 Assets
Organizational Control Managers must monitor evaluate Are we efficiently converting inputs into outputs? Must accurately measure units of inputs and outputs. Is product quality improving e Are we competitive with other firms? Are employees responsive to customers? customer service is increasingly important. Are our managers innovative in outlook? Does the control system encourage risk-taking
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1. Asymmetric auctions Consider an interdependent-values auction with two bidders, each of whom observes an i.i.d uniform signal s; E [ 0, 1]. Bidder i' s valuation for the object is equal to