As It Relates to Corporations, the Principal-Agent Problem Is That

question 72

Multiple Choice

As it relates to corporations, the principal-agent problem is that

• A)the goals of the corporate managers (the principals)may not match the goals of the corporate owners (the agents).
• B)the goals of the corporate managers (the agents)may not match the goals of the corporate owners (the principals).
• C)the federal government (the agent)taxes both corporate profits and the dividends paid to stockholders (the principals).
• D)it is costly for the corporate owners (the principals)to obtain a corporate charter from government (the agent).

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Definitions:

Statistical Base

The underlying data or information used for statistical analysis or for forming conclusions.

Numerator

The top number in a fraction, representing the number of equal parts being considered, as opposed to the denominator which indicates the total number of parts.

External Validity

The extent to which the results of a study can be generalized or applied to contexts outside the study conditions.

Telephone Surveys

A research method in which data is collected from respondents over the telephone to gather information on various topics.