Which One of the Following Is Most Likely to Create

question 43

Multiple Choice

Which one of the following is most likely to create a situation where an agency conflict could arise?

• A)increasing the size of a firm's operations
• B)downsizing a firm
• C)separating management from ownership
• D)decreasing employee turnover
• E)reducing both management and non-management salaries

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Definitions:

Pays

A term that likely refers to the act of giving money in exchange for goods, services, or to fulfill obligations, but without additional context, it's too generic to define specifically.

Public Good

A product or service that is provided without profit for the benefit of all members of a society, characterized by its non-excludability and non-rivalry in consumption.

Marginal Benefit Curve

A graphical representation that shows how the benefit to consumers changes as the quantity of a good or service increases.

Private Market

A segment of the economy composed of companies and financial transactions that are not regulated by the government.