All Else Equal, in Which of the Following Forms of Business

question 21

Multiple Choice

All else equal, in which of the following forms of business would the possibility of an agency problem be the greatest?

• A) An S.A.company that is publicly traded.
• B) A proprietorship.
• C) A partnership in which all the partners share management and decision-making responsibilities equally.
• D) A foreign company with concentrated ownership-that is, relatively few owners.

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Definitions:

Naturalistic Observation

A descriptive research method in which researchers observe and record behavior in its natural setting, without attempting to influence or control it.

Describing Behavior

The process of observing and recounting actions or responses of individuals or groups in a detailed and systematic manner.

Potential Employees

Individuals who have the possibility or suitability to be hired for a job but have not yet been employed by the organization.

Prediction

The act of forecasting or estimating future events or trends based on current or past data.