Which of the Following Firms Is Most Likely to Suffer

question 62

Multiple Choice

Which of the following firms is most likely to suffer from principal-agent problems?

• A)A young firm in a growth industry
• B)A mature firm with few growth opportunities
• C)A mature firm with few growth opportunities and which is controlled by its management
• D)A mature firm with few growth opportunities and which, though being controlled by its managers, has highly concentrated stock ownership

---

Definitions:

Sorority

A sorority is a social organization at colleges and universities primarily for female students, often characterized by a system of values, sisterhood, and philanthropic activities.

Normal Curve

A symmetrical bell-shaped curve that represents the distribution of many types of data in statistics.

Normal Distribution

is a bell-shaped curve that represents the distribution of many types of data, where most values cluster around a central mean or average.

Frequently Occurring

Events or phenomena that happen often or with regularity within a determined period.