According to Agency Theory,when a Compensation System Aligns the Interests

question 28

Multiple Choice

According to agency theory,when a compensation system aligns the interests of the agent with the principal's own interests,the compensation system should

• A)be behaviour oriented.
• B)reduce agency costs.
• C)be outcome oriented.
• D)reduce risks.

---

Definitions:

Imperialism

A policy or practice by which a country increases its power by gaining control over territories directly or through political and economic influence.

Foreign Policy Goals

The objectives that a country's government seeks to achieve in its relations with other nations, including peace, economic growth, and national security.

Foreign Policy Elite

A group of people, typically from a country's government, intellectuals, and experts, who have a significant influence on the formation of foreign policy.

Late Nineteenth Century

The period from 1870 to 1899, characterized by industrial growth, colonial expansion, and significant social and technological changes.