_____ Is an Example of an Agency Problem

question 39

Multiple Choice

_____ is an example of an agency problem.

• A) Managers engage in empire building
• B) Managers protect their jobs by avoiding risky projects
• C) Managers over consume luxuries such as corporate jets
• D) All of the answers provide examples of agency problems

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Definitions:

GRI

Global Reporting Initiative; a leading framework for sustainability reporting that provides guidelines for companies to report their environmental, social, and governance performance.

Labour Practices

The policies and practices related to workers and the workplace, including recruitment, compensation, work hours, and conditions.

Decent Work

Employment that is productive, delivers a fair income, provides security in the workplace and social protection for families, and encourages social dialogue and respect for rights.

Emissions Trading Scheme

A market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.