What Is the Most Common Way That Agency Problems Are

question 79

Multiple Choice

What is the most common way that agency problems are addressed in most corporations?

• A)by using disinterested outside bodies to adjudicate between managers and shareholders when such conflicts arise
• B)by minimising the number of decisions that a manager makes where there is a conflict between the manager's interests and those of the shareholders
• C)by terminating the employment of employees who are found to have put their own interests above that of the company's
• D)by prosecuting managers who have been found to have illegally used company monies for their own benefit

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Definitions:

Loyalty

The quality of being faithful to a brand, company, or service, often resulting from customer satisfaction, trust, and positive experiences.

Positioning Statement

A brief description that outlines how a brand or product fits into the market and what differentiates it from competitors, aimed at capturing the intended target market's interest.

Differentiating

The process of making a product or service stand out from competitors in the market by emphasizing unique features or benefits.

White Space

Areas of potential opportunity where a company can innovate or market in ways not currently being exploited, often leading to new products or services.