Which of These Are NOT Basic Approaches to Minimizing the Agency

question 32

Multiple Choice

Which of these are NOT basic approaches to minimizing the agency problem?

• A) Just ignore the conflict of interest.
• B) Monitor managers' actions.
• C) Align managers' personal interest with those of the owners by making the managers owners.
• D) All of these are basic approaches to minimizing the agency problem.

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Definitions:

Alpine Lodge

A mountain lodge offering accommodations and services typically geared towards hikers, skiers, and outdoor enthusiasts in Alpine regions.

Valet Parking

A service where an attendant parks and retrieves vehicles for guests at a venue or establishment.

Gross Negligence

An extreme lack of care or failure to act that demonstrates a disregard for the safety or rights of others, potentially leading to legal liability.

Bailment

The transfer of a chattel by the owner to another for some purpose, with the chattel to be later returned or dealt with in accordance with the owner’s instructions.