The Most Correct Reason of Why Residual Loss Is Incurred

question 21

Multiple Choice

The most correct reason of why residual loss is incurred is:

• A) principals do not take any actions to control agents' behaviours.
• B) agents do not always act in the best interest of principals.
• C) it is too costly for principals to completely monitor agents' behaviours.
• D) agents are rational wealth maximisers.

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Definitions:

\(3y\)

An algebraic expression representing thrice the variable y.

\(z\)

Often used to represent a complex number in the form of \(z = a + bi\), where \(a\) and \(b\) are real numbers and \(i\) is the imaginary unit.

Coefficient

A coefficient is a numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., 4 in 4x).

Binomial

A polynomial with exactly two terms.