Which of the Following Are Mechanisms That Have Evolved to Mitigate

question 37

Multiple Choice

Which of the following are mechanisms that have evolved to mitigate potential agency problems? I) Using the firm's stock options for compensationII) Hiring bickering family members as corporate spiesIII) Boards of directors forcing out underperforming managementIV) Security analysts monitoring the firm closelyV) Takeover threats

• A) II and V
• B) I, III, and IV
• C) I, III, IV, and V
• D) III, IV, and V
• E) I, III, and V

Understand the complexities and challenges of blended families.

Acknowledge the psychological effects associated with life transitions, such as empty nest syndrome and the sandwich generation.

Understand the key concepts and terminologies in industrial-organizational psychology.

Recognize the impact of observation on employee productivity, specifically the Hawthorne effect.

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Definitions:

Utility Maximizing

The economic principle where consumers allocate their resources to maximize their overall satisfaction or utility.

Consumption Mix

Refers to the combination of goods and services consumed by an individual or within an economy.

Theory of Consumer Behavior

An economic framework describing how individuals make decisions to allocate their resources on consumption items, based on their preferences, income, and the prices of goods and services.

Diminishing Marginal Utility

The principle that as a consumer increases consumption of a good or service, the incremental satisfaction gained from consuming each additional unit decreases.