Which of the Following Forms of Business Organization Is Likely

question 230

Multiple Choice

Which of the following forms of business organization is likely to suffer most from the principal agent problem between the owners and managers of the business?

• A) proprietorships
• B) partnerships
• C) corporations
• D) All are equally likely to suffer from the principal-agent problem.

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Definitions:

Volley Principle

Principle addressing limitations of the frequency theory of hearing, stating that a cluster of nerve cells can fire neural impulses in rapid succession, producing a volley of impulses.

Perceptual Set

A predisposition or readiness to perceive something in a particular way.

Selective Attention

The process by which a person focuses on one stimulus or task while ignoring other stimuli, highlighting the capacity to prioritize cognitive processing.

Absolute Threshold

The minimum amount of stimulus energy that a person can detect.