When the Interests of Management and Owners Are Not Aligned

question 68

Multiple Choice

When the interests of management and owners are not aligned, there will likely be a(n)

• A) agency problem.
• B) free agency dilemma.
• C) shareholder rebellion.
• D) shareholder resolution.

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Definitions:

Human Nature

Fundamental qualities, involving thought processes, emotional responses, and behaviors, considered universal across humanity.

Social Problems

Issues that affect a large number of people within a society, often reflecting group values and involving collective solutions.

Optimistic

Inclined to have a hopeful and positive outlook on life, expecting the best possible outcomes in various situations.

Genetically Based

Pertains to traits, behaviors, or dispositions that are inherited from one's parents through genes.