The Possibility That an Employee May Not Work Hard Is

question 32

Multiple Choice

The possibility that an employee may not work hard is an example of the

• A)limited liability problem.
• B)principal-agent problem.
• C)transactions cost problem.
• D)technological efficiency problem.
• E)partnership problem.

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Definitions:

Margin Call

A request from a broker to an investor to add more funds or securities to compensate for potential losses.

Short 100 Shares

The act of selling 100 shares of stock not currently owned, with the expectation that the stock can be bought back at a lower price in the future for profit.

Rate of Return

A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Short 100 Shares

Short 100 Shares refers to the investment strategy where an investor borrows 100 shares of a stock with the aim of selling them with the expectation that their price will decline.