Because Managers (________)Have Less Incentive to Maximize Profits Than the Stockholders-Owners

question 80

Multiple Choice

Because managers (________) have less incentive to maximize profits than the stockholders-owners (________) do,stockholders find it costly to monitor managers; thus,stockholders are reluctant to purchase equities.

• A) principals; agents
• B) principals; principals
• C) agents; agents
• D) agents; principals

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Definitions:

Hemispherectomy

A surgical procedure involving the removal or disabling of one cerebral hemisphere, usually to treat severe epilepsy.

Muscle Contractions

Muscle contractions refer to the tightening or shortening of muscles, which results in movement or maintenance of posture.

ACh

Short for Acetylcholine, a neurotransmitter in the body involved in many functions including muscle movement and memory.

Dopamine

A neurotransmitter in the brain associated with pleasure, movement, and the reward system.