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:

Neutrons

Subatomic particles found in the nucleus of an atom, with no electrical charge and a mass slightly larger than that of protons.

Isotope

Variants of a particular chemical element which differ in neutron number, and consequently in nucleon number, but share the same number of protons.

Electrons

Negatively charged particles within atoms, essential for conducting electricity in solid materials.

Iron

A metal element with the symbol Fe, known for its magnetic properties and widely used in construction, manufacturing, and biochemistry.