The Statement Concerning Agency Relationships Between Owners and Managers That

question 33

Multiple Choice

The statement concerning agency relationships between owners and managers that is incorrect is:

• A) One way to reduce potential conflicts between owners and managers is to include bonuses based on profits in managers' remuneration packages
• B) Monitoring is an activity undertaken by or on behalf of management
• C) Owners may want cash dividends from the business but managers may prefer to retain cash for expansion
• D) None of the above is incorrect, i.e., all are correct

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Definitions:

Organizational Culture

The shared values, beliefs, attitudes, and practices that define a company and influence its interactions and operations.

Strategic Business Issues

Significant challenges or opportunities that affect an organization's strategy and business direction.

Training Effectiveness

The degree to which training programs achieve their intended outcomes, such as improving skills, knowledge, or job performance.

Orientation

The process of introducing new employees to their job, the company culture, and the organizational values and expectations.