Sole Proprietorships Resolve the Issue of Agency Problems By

question 78

Multiple Choice

Sole proprietorships resolve the issue of agency problems by:

• A) avoiding excessive expense accounts.
• B) discharging those who violate the rules.
• C) allowing owners to share the cost of their actions with others.
• D) forcing owners to bear the full cost of their actions.

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Definitions:

Organizational Members

Individuals who are part of a structured entity aimed at achieving collective goals.

Permanently Assigned

The status of being indefinitely designated to a particular task, role, or position within an organization.

Differentiated Departments

Units within an organization that are specialized and distinct from each other in their functions, roles, and objectives.

Liaison Roles

Positions or duties in which an individual is responsible for facilitating communication and coordination between different groups or departments within an organization.