The Principal-Agent Problem Occurs as a Result Of

question 21

Multiple Choice

The principal-agent problem occurs as a result of:

• A) the absence of a contract between managers and owners.
• B) the separation of ownership from management.
• C) the difficulty of identifying the principal agent with whom to negotiate.
• D) competition between managers at various levels.
• E) none of the above.

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Definitions:

Planning Tools And Techniques

Methods and resources used to organize, implement, and monitor plans, ranging from simple checklists to complex software applications designed for specific planning needs.

Managers

Individuals in an organization responsible for controlling or administering all or part of a company or similar organization, including planning, directing, and overseeing operations and people.

Strategic Plans

Forward-looking plans that outline an organization's goals and define the strategy and actions required to achieve them.

Tactical Plans

Short-term, specific plans created to implement the strategies of an organization, generally focusing on achieving specific goals within a one to three-year period.