What Is the Most Common Way That Agency Conflict Problems

question 11

Multiple Choice

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

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

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Definitions:

Dependent Variable

The variable in a study or experiment that is affected by changes in another variable and is measured or observed.

Significant Contribution

A meaningful impact or improvement made by an action, study, or individual that notably advances a field or solves a problem.

Sum of Squares

A statistical technique used to quantify the variation within a data set by summing the squared deviations of each data point from the mean.

Prediction Equation

An equation used to predict the value of a dependent variable based on the values of one or more independent variables.