​A Potential Problem Arises in Principal-Agent Relationships

question 79

Multiple Choice

​A potential problem arises in principal-agent relationships

• A)​because the agents and the principals have identical goals
• B)because the principals may want to minimize his profits,while the agent may want to maximize them
• C)because the agents may have different goals from the principals
• D)​the goals of principals and agents are irrelevant

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Definitions:

Nature and Nurture

The debate and study of the relative contributions of genetic inheritance (nature) and environmental factors (nurture) to human development and behavior.

Heritability

A measure of how much of the variation in a trait within a population can be attributed to genetic differences between individuals in that population.

Genetically Influenced Traits

Characteristics and attributes that are affected by the genetic makeup of an individual, including physical attributes and susceptibility to certain diseases.

Interaction

The interplay that occurs when the effect of one factor (such as environment) depends on another factor (such as heredity).