Agency Problems Arise When the Interests of Owners and Managers

question 3

Multiple Choice

Agency problems arise when the interests of owners and managers

• A) diverge
• B) converge
• C) are compatible
• D) are similar

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Definitions:

Discriminative Stimulus

A stimulus in the presence of which a particular response will produce reinforcement or a specific outcome, but will not do so in its absence.

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response or behavior by providing a consequence an individual finds rewarding.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, influencing the likelihood of that behavior being repeated.

Pavlovian Conditioning

A form of learning in which a neutral stimulus comes to elicit a response after being paired with a stimulus that naturally brings about that response.