Managerial Reputation Is an _____ Incentive That Helps to Mitigate

question 18

Multiple Choice

Managerial reputation is an _____ incentive that helps to mitigate the _______ principal-agent problem.

• A) internal; manager-worker
• B) internal; manager-consumer
• C) external; owner-manager
• D) external; owner-consumer

---

Definitions:

Psychological Control

The manipulation of someone else's psychological and emotional state to influence their behavior, often in a negative way.

Punishment

The infliction of a penalty or negative consequence on someone as a response to undesirable behavior, intended to decrease that behavior's occurrence.

Spanked

The act of hitting someone, typically a child, on the buttocks as a form of punishment.

Predictor

A variable or factor that is used to forecast or indicate a potential result or outcome in various contexts, including statistical, psychological, and environmental.