The Only Two Ways of Dealing with the Principal Agent

question 248

True/False

The only two ways of dealing with the principal agent problem are the use of long-term contracts and monitoring.

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Definitions:

Successfully Implemented

Refers to projects, initiatives, or strategies that have been executed effectively and have achieved their intended goals.

Pyramid Of Social Responsibility

A model that outlines a corporation's obligations to stakeholder groups in a hierarchical manner, prioritizing economic, legal, ethical, and philanthropic responsibilities.

Ethical And Socially Responsible

Being ethical and socially responsible means conducting business in a manner that is fair, ethical, and conscious of the broader community and environmental impact.