Monitoring Costs Are

question 41

Multiple Choice

Monitoring costs are:

• A)the costs of a failure in bargaining.
• B)rarely incurred in contracts between a principal and an agent.
• C)the insurance costs of guaranteeing that the principal will not incur a cost of contract failure.
• D)the costs of reviewing and overseeing the actions of an agent.

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Definitions:

Free Cash Flows

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Sole Proprietorship

A business owned by one individual.

Unlimited Liability

A legal obligation where the owners or partners of a business are personally responsible for all the debts of the business, without any limits on the amount for which they can be liable.

Transfer Ownership

The process of legally moving the rights and responsibilities of an asset or property from one entity or individual to another.