RedMart Corp

question 26

Multiple Choice

RedMart Corp. operates a chain of supermarkets. The managers and other employees of the company have been on strike for months due to their differences with its owners. As a result, the share price of the company has fallen drastically. Pro Investments Inc. purchases a majority of the shares of RedMart, confident that it can manage the company better. The problem faced by RedMart Corp. as result of the separation of ownership and control can be termed as a(n) _________.

• A)hostile takeover
• B)proxy fight
• C)agency problem
• D)accountability problem

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Definitions:

Sales Clerk

An employee typically found in retail settings responsible for processing sales transactions, assisting customers, and managing inventory.

Incentives

Forms of motivation aimed to encourage people towards certain behaviors or actions by offering rewards.

ERG Theory

A motivation theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth needs, suggesting that individuals are motivated to fulfill these needs in a hierarchical order.

Clayton Alderfer

A psychologist known for developing ERG theory, which categorizes human needs into existence, relatedness, and growth categories.