Monitoring a Manager Can Be Difficult If

question 44

Multiple Choice

Monitoring a manager can be difficult if

• A)the owner and manager do not have an enforceable contract.
• B)the owner cannot easily observe the manager's actions.
• C)the manager doesn't have to use a time clock.
• D)the board does not have enough outside directors.

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Definitions:

Trade Permits

Licenses required by governments for the legal import or export of certain goods, services, or commodities.

Total Cost

The overall expenditure involved in generating products or offering services, comprising both unchanging and adjustable expenses.

Subsidizing

The act of providing financial support by the government to lower the cost of producing goods or services, often to encourage production or consumption.

External Benefit

A positive effect or advantage that extends beyond the direct parties involved in a transaction, affecting others who are not directly involved.