As It Relates to Corporations, the Principal-Agent Problem Is That

question 72

Multiple Choice

As it relates to corporations, the principal-agent problem is that

• A)the goals of the corporate managers (the principals)may not match the goals of the corporate owners (the agents).
• B)the goals of the corporate managers (the agents)may not match the goals of the corporate owners (the principals).
• C)the federal government (the agent)taxes both corporate profits and the dividends paid to stockholders (the principals).
• D)it is costly for the corporate owners (the principals)to obtain a corporate charter from government (the agent).

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Definitions:

Mnemonic Device

A strategy or technique that aids in remembering information, such as an acronym or rhyme.

Serial Reproduction

A process in psychology experiments where information is passed from one individual to another in a sequence, often resulting in the alteration of the information.

Typical Interference

Interruptions or distractions that commonly occur during a task, affecting the quality or efficiency of the task's completion.

Attentional Process

The mental activities involved in focusing on specific stimuli while ignoring others, critical in perceiving, thinking, and interacting with the environment.