Which of the Following Offers an Explanation as to Why

question 22

Multiple Choice

Which of the following offers an explanation as to why the principal-agent problem exists for a firm?

• A) The firm cares less about profit and more about cost when there are many competitors in the market.
• B) The firm offers an employee-incentive program in which employees share in the firm's profits.
• C) The firm operates in a market with many competitors forcing the firm to pay its employees more to keep them from switching to another firm.
• D) The firm operates to maximise profit while the employees attempt to work as little as possible to earn their paychecks.

Identify and apply effective team management and conflict resolution skills.

Recognize the importance of clear responsibilities and ground rules in team success.

Differentiate between successful and less successful team behaviors and strategies.

Appreciate the significance of business etiquette in maintaining professional relationships.

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Definitions:

Exocytosis

Elimination of material from a cell through the formation of vacuoles.

Diffusion

The process by which molecules spread from areas of high concentration to areas of low concentration.

Cross-sectional Area

The area of a particular section of an object or substance, usually measured perpendicular to a specific axis.

Capillaries

The smallest blood vessels in the body which facilitate the exchange of water, oxygen, carbon dioxide, and many other nutrient and waste chemical substances between blood and the tissues.