Which of the Following Offers an Explanation as to Why

question 60

Multiple Choice

Which of the following offers an explanation as to why the principal-agent problem exists for a firm?

• A)The firm cares less about profit and more about cost when there are many competitors in the market.
• B)The firm offers an employee-incentive program in which employees share in the firm's profits.
• C)The firm operates in a market with many competitors forcing the firm to pay its employees more to keep them from switching to another firm.
• D)The firm operates to maximize profit while the employees attempt to work as little as possible to earn their paychecks.

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Definitions:

Fluid Intelligence

Our ability to reason speedily and abstractly; tends to decrease with age, especially during late adulthood.

Cross-Sectional

A research method that involves observations of all of a population, or a representative subset, at one specific point in time.

Education Levels

Education levels are the degrees or stages of formal learning that an individual has completed, ranging from elementary to secondary, and further to tertiary education.

Extended Length

An increase in duration or size beyond the usual or expected amount.