Which of the Following Management Actions Reflects Agency Problems Due

question 2

Multiple Choice

Which of the following management actions reflects agency problems due to the fact that information held by the agent is hard to observe?

• A)Enriching managers themselves even if shareholders do not benefit
• B)Avoiding risky strategic initiatives even if shareholders view them as "reasonable"
• C)Paying for services that seem excessive to the shareholders
• D)Pumping up the firm's short-run performance even if shareholders are harmed in the long-run
• E)Giving work a mediocre effort so managers do not have to work excessive hours

---

Definitions:

Specialized Apparatuses

Equipment designed for specific tasks or functions, often used in technical or medical contexts.

Constant Speed

A state of motion in which an object travels at the same rate of distance per unit of time without accelerating or decelerating.

Atelectasis

A condition characterized by the collapse of part or all of a lung, leading to reduced or absent gas exchange.

Pooled Secretions

Accumulation of bodily fluids, typically mucus or saliva, in parts of the body, which can pose a risk of infection or other complications.