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:

Concrete Operational Thought

A stage in cognitive development, described by Piaget, where children aged 7-12 start to think logically about concrete events.

Sensorimotor Thought

refers to the stage in early childhood cognitive development where learning occurs through sensory experiences and manipulating objects.

Preoperational Thought

A stage in Piaget's theory of cognitive development where children from about 2 to 7 years old demonstrate symbolic thinking but not yet using cognitive operations like logic.

Metacognition

The awareness and understanding of one's own thought processes, often referred to as "thinking about thinking."