Which of the Following Forms of Business Organization Is Likely

question 230

Multiple Choice

Which of the following forms of business organization is likely to suffer most from the principal agent problem between the owners and managers of the business?

• A) proprietorships
• B) partnerships
• C) corporations
• D) All are equally likely to suffer from the principal-agent problem.

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Definitions:

Economically Advantaged

Individuals or groups with greater financial resources, wealth, or access to economic opportunities compared to others.

Adoptive Parents

Individuals or couples who legally assume the responsibility of parenting a child not biologically their own.

Abortion Policies

Guidelines or regulations governing the conditions under which abortion is permitted or restricted within a legal or institutional framework.

Industrialized Countries

Nations with significant levels of industrialization, including advanced technological infrastructure and high levels of income and standard of living.