What Role Does Reputation Have in Solving Principal-Agent Problems

question 5

Multiple Choice

What role does reputation have in solving principal-agent problems?

• A) There is no effect on reputation.
• B) Reputations enable principals to pick better agents.
• C) Reputation is the only solution to principal-agent problems.
• D) Reputations enable agents to pick better principals.
• E) Principals pay no attention to the reputation of agents.

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Definitions:

Earned Value

A project management technique that measures project performance and progress in an objective manner.

Planned Value

In project management, it refers to the estimated monetary value of the work planned to be completed at a certain point in the project's timeline.

Earned Value Management

A project management technique that integrates scope, cost, and schedule to assess project performance and progress.

Partial Completion

Refers to the stage in a project or task where some, but not all, components have been accomplished.