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:

Bone

A rigid organ that constitutes part of the vertebrate skeleton, composed primarily of calcium phosphate and collagen, providing support and protection.

Neuroglial Cells

Supportive cells in the nervous system that provide protection, support, and nutrition to neurons.

Neurons

Specialized cells transmitting nerve impulses; they are the fundamental units of the brain and nervous system.

Nerve Impulses

Electrical signals that travel along nerve fibers, used for communication between different parts of the body.