The Principal-Agent Problem Refers To

question 15

Multiple Choice

The principal-agent problem refers to:

• A) the threat from foreign competition.
• B) the need to manage inventory more effectively.
• C) double-entry bookkeeping.
• D) the potential costs of separation of ownership and control.
• E) the time value of money.

---

Definitions:

Electronic Media

Platforms or channels used for communication that operate electronically, such as radio, television, and the internet.

Retail Factory

A facility that directly sells its products to consumers without involving intermediaries, typically offering goods at reduced prices.

Senior Manager

A high-level executive who oversees managers and reports directly to the company's top management, responsible for strategic planning and decision-making.

Receptionist Cum Sales Person

A role that combines the duties of a receptionist with those of a salesperson, requiring both administrative skills and sales acumen.