The Agency Problem Can Be Avoided If

question 55

Multiple Choice

The agency problem can be avoided if

• A)the firm is not subject to regulation by a government agency.
• B)the manager and owner can manipulate reported profit.
• C)the firm has positive profits.
• D)the goals of the owner and manager are aligned.

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Definitions:

Explicit Instruction

The social process in which children are purposefully taught to use the resources of their culture.

Culture Transmission

The process by which culture, including beliefs, norms, and values, is passed from one generation to the next or from one society to another.

Spaghetti

A long, thin, cylindrical pasta of Italian origin.

Symbolic Tools

Cultural tools, such as abstract knowledge, beliefs, and values.