Which of the Following Factors Is an Effective Tool for Companies

question 3

Multiple Choice

Which of the following factors is an effective tool for companies to use to mitigate hidden action and hidden information problems in agency relationships?

• A)Monitoring
• B)Offshoring
• C)Coordination
• D)Objectives
• E)Confrontation

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Definitions:

NYSE

The New York Stock Exchange, one of the largest stock exchanges in the world, where stocks of publicly-held companies are bought and sold.

TSX

Toronto Stock Exchange, the primary Canadian stock exchange where stocks, bonds, and other securities are bought and sold.

Taxation

The imposition of financial charges or other levies upon a taxpayer by a governmental organization in order to fund various public expenditures.

Limited Liability

A legal principle that limits an investor's losses to the amount of their investment, protecting personal assets beyond the investment in the company.