Which of the Following Is Not a Type of Agency

question 10

Multiple Choice

Which of the following is not a type of agency cost that arises in managerial compensation?

• A)Management's desire for perquisites
• B)Management's risk aversion
• C)Management's desire for outcome-based pay systems
• D)Management's focus on short-term performance and pay

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Definitions:

John Marshall

Was the fourth Chief Justice of the United States (1801–1835), known for his role in establishing the judiciary as a coequal branch of government.

Pennsylvania Abolition Society

is an historic organization founded in 1775, dedicated to promoting the abolition of slavery and assisting freed slaves in the United States.

Slavery

A regime where people are the property of others, lacking in personal autonomy, and compelled to work or provide services for free.

Benjamin Franklin

A leading figure of early American history, noted for his contributions as a statesman, author, printer, political theorist, and scientist, as well as one of the Founding Fathers of the United States.