Which of the Following Offers an Explanation as to Why

question 60

Multiple Choice

Which of the following offers an explanation as to why the principal-agent problem exists for a firm?

• A)The firm cares less about profit and more about cost when there are many competitors in the market.
• B)The firm offers an employee-incentive program in which employees share in the firm's profits.
• C)The firm operates in a market with many competitors forcing the firm to pay its employees more to keep them from switching to another firm.
• D)The firm operates to maximize profit while the employees attempt to work as little as possible to earn their paychecks.

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Definitions:

Bioinformatics

The application of computer technology to the management of biological information, particularly in the fields of genetics and genomics.

Multicellular Adult

An organism that has developed to its mature form, consisting of many cells organized into tissues and organs.

Genetics

The scientific study of genes, heredity, and the variation of organisms, which explains how traits are passed from parents to offspring.

Homeostasis

The self-regulating process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.