Managers (________)May Act in Their Own Interest Rather Than in the Interest

question 88

Multiple Choice

Managers (________) may act in their own interest rather than in the interest of the stockholder-owners (________) because the managers have less incentive to maximize profits than the stockholder-owners do.

• A)principals;agents
• B)principals;principals
• C)agents;agents
• D)agents;principals

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Definitions:

Estimated Values

Values computed from sample data that serve as approximations of population parameters.

Actual Values

The observed or measured values in a dataset, as opposed to predicted or estimated values.

Equal

Having the same value, quantity, or measure as another entity.

Y-Intercept

The y-intercept of a line or curve on a graph is the point at which it crosses the y-axis, indicating the value of the dependent variable when all independent variables are zero.