Which of These Is the System of Incentives and Monitors

question 38

Multiple Choice

Which of these is the system of incentives and monitors that tries to overcome the agency problem?

• A)Security Exchange Commission
• B)checks and Balances
• C)board of Directors
• D)corporate Governance

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Definitions:

Legal Heir

is a person who is legally entitled to inherit assets from the estate of a deceased person, either through a will or through intestate succession laws.

Fiduciary Duty

Someone who is required to act for the benefit of another person on all matters within the scope of their relationship; one who owes to another the duties of good faith, loyalty, due care, and disclosure.

Personal Representative

An individual appointed to administer the estate of a deceased person, managing and distributing the person's assets per their will or law.

Treasury Bills

Short-term government securities issued at a discount from the face value and redeemed at maturity for the full face value.