Because Managers (________)Have Less Incentive to Maximize Profits Than the Stockholders-Owners

question 80

Multiple Choice

Because managers (________) have less incentive to maximize profits than the stockholders-owners (________) do,stockholders find it costly to monitor managers; thus,stockholders are reluctant to purchase equities.

• A) principals; agents
• B) principals; principals
• C) agents; agents
• D) agents; principals

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Definitions:

Conventional Marketing

Traditional marketing methods such as print ads, billboards, and television commercials, as opposed to digital strategies.

Audience's Attention

The focused mental engagement of an audience on a specific message, speaker, or performance.

Gain Effort

The effort put into achieving a positive outcome or benefit.

AIDA Plan

A marketing strategy model that stands for Attention, Interest, Desire, and Action, used to guide the process of advertising or selling a product or service.