Managers May Make Decisions That Are Not Consistent with the Goals

question 24

Multiple Choice

Managers may make decisions that are not consistent with the goals of stockholders.This is referred to as the problem.

• A) principal-agent
• B) economic disincentive
• C) incentive-compromise
• D) efficiency-inefficiency
• E) equilibrium

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Definitions:

Cultural Context

The various social, historical, and cultural factors that influence the meaning of communications or events.

High-Context Culture

Cultures where communication is often indirect and the context of the message is just as important as the words used.

Ethical Dilemma

A situation where an individual or organization must choose between alternatives that may be considered right or wrong, posing a challenge to moral principles.

Ethical Lapse

A failure to behave in an ethically correct manner, often leading to a breach of trust or violation of established codes.