Which Are Social Costs Associated with the Inability of Shareholders

question 13

Multiple Choice

Which are social costs associated with the inability of shareholders to observe a manager's effort? (You may choose more than one.)

• A) excessive insurance offered.
• B) the manager has to be exposed to risk to induce effort, and risk is costly.
• C) the manager ends up exerting less than first-best effort.
• D) excessive effort induced.

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Definitions:

Products

Goods or services that are created through a business process and offered to the market to satisfy consumer needs or wants.

Particular Date

A specific day identified by its unique combination of day, month, and year.

Schedule Variance

Schedule variance is a project management metric that measures the difference between the planned and actual progress of a project, used to assess project health and performance.

Cost Variance

The difference between the budgeted cost of a task or project and the actual cost incurred.