Emerging Trends Resulting from the Agency Problem Are All of the Following

question 126

Multiple Choice

Emerging trends resulting from the agency problem are all of the following EXCEPT

• A) large private corporations.
• B) restructuring through leveraged buyouts.
• C) prohibiting managers from maintaining an ownership interest.
• D) management by active investors.

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Definitions:

Entrepreneurship

The act of creating, developing, and managing a new business venture in order to profit while bearing any of its risks.

Idea Generation

The act of generating, expanding, and conveying innovative thoughts.

Opportunity Recognition

The ability to identify a potentially profitable or beneficial business idea, market niche, product, or service before others.

Entrepreneurs

Individuals who start, design, and manage a new business venture, often taking on greater than normal financial risks.