There Is Less of a Principal-Agent Problem Between Managers and Apple

question 139

Multiple Choice

There is less of a principal-agent problem between managers and apple pickers than between managers and secretaries because:​

• A)apple pickers naturally work harder.
• B)secretaries get paid less than their worth.
• C)productivity is easier to measure in apple picking than in secretarial services.
• D)a secretary's marginal product is easier to estimate than an apple picker's.
• E)secretaries receive on-the-job training but the apple pickers receive no such training.

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Definitions:

Monthly Depreciation

The portion of a fixed asset's cost allocated as an expense over a single month, reflecting the asset's usage and loss of value.

Cash Balance

The total amount of cash or cash equivalents a company or individual holds at any given time.

Merchandising Firm

A business that purchases finished goods for the purpose of resale to consumers without altering the condition of the goods.

Merchandise Inventory

Goods or products that a company holds with the intention of selling them to customers as part of its business operations.