Agency Problems Can Best Be Characterized as A

question 14

Multiple Choice

Agency problems can best be characterized as a:

• A)Dislike of firm's bondholders by its equity holders.
• B)Differing incentives between managers and owners.
• C)Spending corporate resources.
• D)Friction between the primary and secondary markets.

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Definitions:

B.F.Skinner

An American psychologist known for his work in behaviorism, particularly the development of the theory of operant conditioning, which relates behaviors to their consequences.

Operant Conditioning

A learning framework in which the force of a behavior is altered by the administration of rewards or corrective actions.

Spontaneous Recovery

A conditioned response that had been eliminated reemerges after a time without any contact with the stimulus that initially created it.

Respondent Behavior

Behavior that occurs in response to specific stimuli and is usually conditioned by previous experiences.