The Temptation of Imperfectly-Monitored Workers to Shirk Their Responsibilities Is

question 58

Multiple Choice

The temptation of imperfectly-monitored workers to shirk their responsibilities is

• A)an example of the adverse-selection problem.
• B)an example of the "lemons" problem.
• C)an example of the principal-agent problem.
• D)an example of signaling.

---

Definitions:

Stock Split

A decision by a company to increase the number of its outstanding shares by issuing more shares to current shareholders.

Common Stock

An equity ownership interest in a corporation, typically entitling the owner to vote on corporate governance matters and receive dividends.

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock, indicating the company's profitability.

Outstanding

An adjective describing something that is still in progress, unsettled, not yet resolved, or in the case of financials, amounts owed that have not yet been paid.