Any System That Aims to Better Align Management Activities with the Interests

question 79

Multiple Choice

Any system that aims to better align management activities with the interests of shareholders is known as:

• A) effective control
• B) principal-agent control
• C) corporate governance
• D) activity-based control
• E) a balanced scorecard.

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Definitions:

Economic Rent

The surplus income received by a factor of production (land, labor, or capital) due to its limited supply, over and above its opportunity cost.

Pro Tennis Tour

A circuit of internationally recognized tennis tournaments in which professional tennis players compete for titles and prize money.

Labor Supply Curve

Depicts the relationship between the wage rate and the quantity of labor workers are willing to supply; generally upward sloping, indicating more labor supplied as wages increase.

Higher Wages

Higher wages refer to an increase in the wage rate, leading to greater compensation for workers.