The Incentive Problem Within the Modern Corporation Is That The

question 1

Multiple Choice

The incentive problem within the modern corporation is that the:

• A)decision makers have stronger incentives to use assets productively than in small business where there is big separation of ownership and control.
• B)decision makers have weaker incentives to use assets productively than in small business where there is a big separation of ownership and control.
• C)decision makers have stronger incentives to use assets productively than in small business where there is no separation of ownership and control.
• D)decision makers have weaker incentives to use assets productively than in small business where there is no separation of ownership and control.

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Definitions:

Intervening Causes

Events that occur after a defendant's negligent act and contribute to a plaintiff's injury, potentially affecting liability and damages.

Superseding Causes

Events or actions that intervene in a chain of causation and prevent an actor from being liable for harm to another.

Harm

Refers to damage or injury that affects someone or something's well-being or functionality.

Abnormally Dangerous Activity

An abnormally dangerous activity is any activity that inherently involves a high risk of harm or injury to people or property, even when all possible safety measures are taken.