A Company Scientist at a Biotechnology Company Decides to Work

question 10

Multiple Choice

A company scientist at a biotechnology company decides to work on his own research project,hoping to eventually start his own firm,rather than on the project he was assigned.However,the company's stockholders are unaware of this situation.This is an example of a(n) _____ in the context of a principle-agent problem.

• A) adverse selection
• B) stakeholder strategy
• C) moral hazard
• D) shared value creation

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Definitions:

Client-visits

The instances when a client or customer visits a business premise for the purpose of obtaining services or conducting business.

Activity Variance

The difference between budgeted and actual costs due to changes in the level of activity.

Budgeting

Formulating a scheme for managing your funds, highlighting a firm's monetary and practical ambitions.

Tenant-days

A metric used in real estate management to measure the total number of days a property is rented out to tenants over a specific period.