One View of the Firm Is That Stockholders Hire Managers

question 16

Multiple Choice

One view of the firm is that stockholders hire managers who,in turn,hire workers.Maximum profits are earned by satisfying the customer.The two principal-agent relationships illustrated in this view are:

• A)manager-stockholder; worker-manager
• B)stockholder-manager; customer-manager
• C)manager-stockholder; manager-worker
• D)stockholder-manager; manager-worker

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Definitions:

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The power or right vested in a legislative body to enact laws, statutes, and regulations.

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Efforts and policies aimed at preserving and restoring the natural environment from damage caused by human activities.

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Environmental Protection Legislation

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