An Agency Problem Can Occur When

question 47

Multiple Choice

An agency problem can occur when

• A) the desires and objectives of the owners and agents conflict.
• B) there is too much oversight.
• C) the owners and agents share the same attitudes toward risk.
• D) executives select risky strategies because they fear losing their jobs if the strategy fails.
• E) there is a dual role for the CEO and chair of the board.

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Definitions:

Yeast

Unicellular fungus that has a single nucleus and reproduces asexually by budding or fission, or sexually through spore formation.

Fungal Infections

Conditions caused by the growth of fungi in or on the body, leading to symptoms ranging from mild to severe.

Nucleus

Membrane-bound organelle within a eukaryotic cell that contains chromosomes and controls the structure and function of the cell.

Ribosomes

Cellular organelles that function as the site of protein synthesis, reading mRNA and assembling amino acids into proteins.