Which of the Following Will Not Reduce the Likelihood of a Principal-Agent

question 116

Multiple Choice

Which of the following will not reduce the likelihood of a principal-agent problem when getting your car repaired?

• A)asking to see the replaced parts
• B)staying to watch the repair being done
• C)gathering information on car repair
• D)not paying until after the repair job is finished
• E)persuading the mechanic you know a lot about cars

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Definitions:

Bill Payments

The process of settling financial obligations for services rendered or goods provided.

Just-In-Time Scheduling

A method of minimizing inventory by sending out materials to workstations “just in time” to be used.

Production Delays

Refers to instances where the manufacturing or creation of products is slowed down or postponed due to various unforeseen issues such as supply chain disruptions, labor shortages, or equipment failures.

Raw Materials

Basic materials used in the production of goods, typically natural resources such as metals, wood, or oil.