The Basic Incentive Problem Is That Owners And

question 24

Multiple Choice

The basic incentive problem is that owners and:

• A) employees have similar objectives.
• B) employees have fundamentally different objectives.
• C) employees need government assistance to solve differences.
• D) banks provide funding for growth.

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Definitions:

Tyranny

Rule by those who wield their power oppressively and abusively.

Social Contract

An agreement, tacit or explicit, between all members of society, in which each citizen gives up certain rights and privileges in return for the protection and mutual advantage of society.

Distributive Justice

The concept concerning the fair allocation of resources among diverse members of a community.

Oligarchy

Rule by the few.