One of the Major Reasons That Corporations Have a Principal-Agent

question 15

Multiple Choice

One of the major reasons that corporations have a principal-agent problem is that

• A) management is less transparent.
• B) they have an inefficient and incompetent management team.
• C) direct control and ownership are often separate.
• D) there is a lack of communication between the owners and the management team.

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Definitions:

Cerebellum

A region of the brain that plays an important role in motor control, and also in some cognitive functions like attention and language.

Cerebral Cortex

The outer layer of the cerebrum, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Right Hemisphere

The right side of the brain, which is typically associated with creativity, spatial ability, and the processing of visual and auditory information.

Navigate Spaces

The ability to orient oneself and move through different environments or areas, often involving spatial awareness and directional sense.