What is the principal-agent problem? A) It is a problem of the power system of boss and subordinate where the boss (principal) exerts influence over his subordinates (agents) using punishment or threat. B) It is a problem that exists when a person (principal) has more information about the task than the agent he hires to perform the task. C) It is a problem caused by a person (principal) who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way. D) It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What is the principal-agent problem? A) It is a problem of the power system of boss and subordinate where the boss (principal) exerts ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Managers establish a shared vision in order to motivate and inspire a group movement toward that vision. select one: a. True b. False
Answers (1)
When a rocky shore erodes at approximately the same rate, we call that a: a. spit b. tombolo c. sea stack d. wave-cut cliff e. sea cave?
Answers (1)
Acquired $30,000 cash from the issue of common stock. Purchased inventory for $15,000 cash. Sold inventory costing $9,000 for $20,000 cash. Paid $1,500 for advertising expense. Required a.
Answers (1)
Which of the following refers to the marketing activity in which a firm "ambushes" consumers with promotional content in places they are not expecting to encounter this kind of activity?1. Media relations2. Corporate identity3. Sponsorships4.
Answers (1)
1. Explain why Pollack suddenly became motivated to better understand how to manage his own finances.
Answers (2)
New Questions in Business
The Tip-Top Paving Co. wants to be levered at a debt to value ratio of. 6. The cost of debt is 11%, the tax rate is 34%, and the cost of equity for an all equity firm is 14%. What will be Tip-Top's cost of equity?
Answers (1)
During 2019, its second year in operation, Sanborn Company delivered goods to customers equal to $6,250,000. The amount of cash collected from customers was $6,360,000. The amount of accounts receivable at the beginning of 2019 was $1,200,000.
Answers (1)
Louisiana Specialty Foods can produce its famous meat pies in its factory at a production rate of 1650 cases each per day. The firm distributes the pies to regional stores and restaurants whose demand is a steady demand rate of 250 cases per day.
Answers (1)
A company that produces gift cards for various retail stores implemented a marketing campaign that for a limited time offered a 10% discount on gift cards if you purchased three or more at the same time.
Answers (1)
A currency trader observes the following quotes in the spot market: 1 U. S. dollar = 122 Japanese yen 1 British pound = 2.25 Swiss francs 1 British pound = 1.63 U. S.
Answers (1)