Which of the Following Will Control Incentive Problems in a Corporation

question 6

Multiple Choice

Which of the following will control incentive problems in a corporation?

• A) Managers to check on their employees email and other activities closely.
• B) Managers to force employees to adopt higher and stringent ethical standards.
• C) Managers and employees to adopt pre-defined ethical standards.
• D) Managers and employees to adopt higher and stringent ethical standards.

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Definitions:

Raw Material

Basic materials extracted from the environment or produced through agriculture that are used in the manufacture of goods.

Character

A qualitative assessment of a borrower's moral and ethical qualities and the likelihood that they will repay a loan.

Creditworthiness

The assessment of a borrower's ability to repay debt as agreed, often evaluated through credit scores and financial history.

Credit Policy

A set of guidelines a company uses to determine credit terms for its customers, including payment terms and limits.