Which of the Following Is a Tool a Firm Can

question 14

Multiple Choice

Which of the following is a tool a firm can use to combat agency problems?

• A)Monitoring
• B)Performance-Based Incentives
• C)Bureaucracy
• D)a,b & c
• E)None of the above

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Definitions:

Tremendous Competition

A highly competitive market condition where numerous competitors strive intensely to win market share.

Financial Markets

Places or systems where financial instruments, such as stocks, bonds, and commodities, are traded between investors.

Efficient

The characteristic of being able to accomplish a task or function with the minimum waste of time and effort; effectiveness combined with resourcefulness.

Capital Market History

The historical trends and events involving the trading of securities, affecting the structure and behavior of the capital market.