There Is Less of a Principal-Agent Problem Between Managers and Apple

question 103

Multiple Choice

There is less of a principal-agent problem between managers and apple pickers than between managers and secretaries because _____

• A)apple pickers naturally work harder.
• B)secretaries get paid less than their worth.
• C)productivity is easier to measure in apple picking than in secretarial services.
• D)a secretary's marginal product is easier to estimate than an apple picker's.
• E)secretaries receive on-the-job training, but apple pickers receive no such training.

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Definitions:

Cost Of Goods Sold

The immediate expenses linked to the manufacturing of goods a company sells, encompassing costs for materials and labor.

Current Assets

Short-term assets that a company owns, which are expected to be converted into cash within one year, such as inventory, cash, and accounts receivable.

Average Collection Period

A financial metric that measures the average number of days it takes a company to collect payments from its credit sales.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year, such as machinery, buildings, and land.