When the Owner Runs the Business

question 107

Multiple Choice

When the owner runs the business:

• A) he does not bear the full cost of a bad decision.
• B) there is not a principal-agent problem.
• C) he does not receive the full benefit nor the full cost of any decision.
• D) he has only limited liability for the actions of the business.

---

Definitions:

Peptide Bond

A chemical bond formed between two amino acids during protein synthesis, characterized by the linkage of a carboxyl group of one amino acid to the amino group of another.

Amino Acids

Organic compounds that serve as the building blocks of proteins, essential for various bodily functions including tissue repair and nutrient absorption.

Chromosomes

Structures within cells that contain DNA and carry genetic information essential for the development, function, and reproduction of living organisms.

Pituitary Gland

A small, pea-sized gland located at the base of the brain, crucial for controlling growth, metabolism, and the function of other endocrine glands.