From an Agency Theory Perspective, the Goal of Owners Is

question 29

Multiple Choice

From an agency theory perspective, the goal of owners is to encourage the agents to act in the best interests of the owners. This means:

• A)more emphasis on stock performance and less emphasis on outcome-oriented contracts.
• B)less emphasis on noncontingent pay and more emphasis on outcome-oriented contracts.
• C)more emphasis short term compensation and less emphasis on long term compensation.
• D)more emphasis on base pay and less emphasis on stock performance.
• E)less emphasis on short term compensation and more emphasis on base pay.

---

Definitions:

Objective Tests

Examinations that require the test taker to select or provide a response from a set of predetermined options.

Personality Inventories

Standardized questionnaires used to assess personality traits and characteristics of individuals.

Ambiguous Pictures

Visual stimuli that can be interpreted in more than one way, often used in psychological tests to assess perception and personality.

Biological Model

An approach to psychology focusing on biological factors influencing behavior and mental states, such as genetics, neurotransmitters, and brain structures.