One Method That Businesses Use to Overcome the Principal-Agent Problem

question 74

Multiple Choice

One method that businesses use to overcome the principal-agent problem is to:

• A) not require the board of directors to oversee management.
• B) reward executives and managers who make poor decisions.
• C) incentivize management.
• D) not give employees a stake in the business.

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Definitions:

Function

A block of organized, reusable code designed to perform a single, related action.

Global Variables

Variables declared outside any function, accessible by any part of the program.

Expressions

Combinations of variables, operations, values, and functions that are evaluated to produce another value in programming.

Variable Name

An identifier assigned to a storage location in memory to store values during a computer program's execution.