Agency Costs Arise When ________

question 90

Multiple Choice

Agency costs arise when ________.

• A) there are high labor costs
• B) input costs are higher than interest costs
• C) interest costs exceed dividend payments
• D) conflicts of interest exist between stakeholders

---

Definitions:

Integrative Bargaining

A negotiation strategy where parties collaborate to find mutually beneficial solutions that satisfy the interests of both, rather than competing over a fixed amount of resources.

Laboratory Conditions Doctrine

A legal principle in labor law requiring that union representation elections be conducted in an environment that is free from employer coercion and interference.

Representation Election

This is a procedure where employees vote on whether or not they wish for union representation, sometimes leading to the establishment of a new union presence.

Unionization

The process by which workers form or join a labor union to collectively negotiate with their employer for improved conditions, wages, and benefits.