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When managers' compensation plans are tied in a meaningful manner to the profits of the firm, agency problems:
Traits
Enduring characteristics or qualities that define an individual's behavior across various situations.
Individual Fitness
In biology, it refers to an organism's ability to pass its genes to the next generation, often measured by reproductive success.
Situational Constraints
External factors present in the environment that limit or shape an individual's behavior or choices.
Survival
Living longer.
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