Agency Problems Can Least Be Controlled By

question 13

Multiple Choice

Agency problems can least be controlled by:

• A) establishing good internal controls and procedures.
• B) designing compensation packages that align manager's goals with those of the shareholders.
• C) good systems of corporate governance.
• D) electing senior managers to the board of directors.

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Definitions:

Negligently Left

implies a scenario where an item or individual is unintentionally left behind due to a lack of proper care or attention.

Banana Peel

Often used metaphorically to describe a potential hazard or slip-up that seems trivial but can lead to significant consequences.

Injured

The state of having received harm or damage, physically or legally, which may serve as a basis for seeking compensation or redress in a court of law.

Sued

The act of bringing a legal action against an individual or entity, seeking a legal remedy for damages or enforcement of rights.