The Principal-Agent Problem in Corporations Arises From

question 89

Multiple Choice

The principal-agent problem in corporations arises from:

• A) the fact that the principal objective of most corporations is to make profits and not to contribute to charity.
• B) a conflict of interest between corporate executives who manage the firm and stockholders who own the firm.
• C) the view that workers are agents who are not considered to be the principal asset of the corporations for which they work.
• D) a perspective that corporations are agents that represent the principal source of power for government and the national economy.

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Definitions:

Sawhorse Structure

A pictorial representation used in chemistry to visualize the spatial arrangement of bonds and atoms in a molecule, providing a three-dimensional perspective.

Eclipsed Conformer

A conformer of a molecule in which adjacent atoms are aligned with minimal spatial separation, leading to maximal torsional strain.

Ethane

A colorless, odorless gas, which is the second simplest alkane, with the chemical formula C2H6.

Conformational Isomers

Molecules that have the same molecular formula and sequence of bonded atoms (constitution), but differ in the three-dimensional orientations of their atoms in space due to rotation around a single bond.