________ Means That as a Firm Grows and Adds Personnel

question 22

Multiple Choice

________ means that as a firm grows and adds personnel, the new hires typically do not have the same ownership incentives as the original founders, so the new hires may not be as motivated as the founders to put in long hours or may even try to avoid hard work.

• A) Difficult selection
• B) Adverse hazard
• C) Ethical selection
• D) Productivity hazard
• E) Moral hazard