As It Relates to Owners and Managers, the Principal-Agent Problem

question 58

Multiple Choice

As it relates to owners and managers, the principal-agent problem results from the

• A) separation of corporate ownership and control.
• B) double taxation of corporate profit.
• C) limited liability of corporate owners.
• D) differing interests of corporate stockholders and bondholders.

---

Definitions:

User Program

A set of coded instructions designed to guide the operation of a computer or other device.

Volatile Memory Elements

Components of memory that require power to maintain stored information, such as RAM in computers.

Battery Backup

An alternate power source intended to provide electricity to essential devices in the event of a primary power failure.

Allen-Bradley SLC-500

A series of small programmable logic controllers (PLCs) manufactured by Allen-Bradley, designed for industrial automation applications.