What Are Three Major Ways That Corporations Can Cope with the Principal-Agent

question 326

Essay

What are three major ways that corporations can cope with the principal-agent problem?

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Definitions:

Contamination

The presence of unwanted substances or impurities that can cause harm or reduce purity.

Anesthetic

A substance used to induce insensitivity to pain, typically during surgical procedures.

Scrub

(1) Claim scrubbing ensures that claims are correctly coded before being sent to the insurance company, which reduces denials and increases payments to the practice; (2) Specific and thorough hand-washing procedure performed for six minutes before taking part in any sterile surgical procedure.

Hand Washing

The act of cleansing the hands with soap and water or sanitizer to remove dirt, pathogens, or other substances.