Managers' Pursuit of Which of the Following Objectives Would NOT

question 47

Multiple Choice

Managers' pursuit of which of the following objectives would NOT lead to a principal-agent problem in a corporation?

• A) The corporation's growth
• B) Increased market share for the corporation
• C) The maximum possible profit for the corporation
• D) A great "golden parachute" or retirement package
• E) Increased current salary and fringe benefits

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Definitions:

Social Comparison Theory

A theory suggesting individuals determine their own social and personal worth based on how they stack up against others.

Persuade

The act of convincing someone to do something or to believe in something through reasoning, argumentation, or appeal.

Aggressively

Behaving or acting in a manner that is forceful, assertive, or with a strong intent to dominate or succeed.

Self-serving Bias

The common tendency to attribute one's successes to personal characteristics and failures to external factors.