Which Form of Business Structure Faces the Greatest Agency Problems

question 36

Multiple Choice

Which form of business structure faces the greatest agency problems?

• A) sole proprietorship
• B) general partnership
• C) limited partnership
• D) corporation
• E) limited liability company

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Definitions:

Triggered

Refers to an emotional or psychological response brought on by a specific stimulus or event.

Social Inequalities

Disparities in wealth, status, or power among individuals or groups within a society.

Ingroup Bias

The tendency to favor and prioritize the members of one's own group over those of another.

Outgroup Homogeneity

The tendency to view members of an outgroup as more similar to one another than members of one's own group (ingroup).