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A Wal-Mart store in a small town monitors customer complaints and organizes these complaints into six distinct categories. Over the past year, the company has received 534 complaints. One possible graphical method for representing these data would be a Pareto chart.
Asymmetric Information
A situation where one party in a transaction has more or superior information compared to another, often leading to an imbalance in the transaction.
Small Firms
Businesses often characterized by a small number of employees, limited market share, and possibly locally oriented markets.
Principal-Agent Problem
A situation in economics where there is a conflict of interest between a principal (such as a shareholder) and an agent of the principal (such as a manager), due to the agent having more information.
Golden Parachute
A substantial benefits package given to top executives if the company is taken over by another firm, and the executives are terminated as a result of the takeover.
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