The Principal-Agent Problem Refers to the Fact That Firms Must

question 330

Multiple Choice

The principal-agent problem refers to the fact that firms must

• A) choose between economic efficiency and technological efficiency.
• B) choose between a managerial and an incentive system.
• C) devise incentives to get employees to work in the best interest of the firm's owners.
• D) choose between operating as a partnership or corporation.

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Definitions:

Three-dimensionality

The quality or condition of having or seeming to have length, breadth, and depth, giving a sense of physical volume.

Tony Smith

An influential American sculptor known for his large, abstract, geometric works and a significant figure in the minimalist art movement.

Ellsworth Kelly

An American painter, sculptor, and printmaker associated with hard-edge painting, Color Field painting, and minimalism.

Painting Red Green Blue

A reference to the RGB color model used in digital painting and screen display, where red, green, and blue light are combined in various ways to reproduce a broad array of colors.