The Existence of the Principal-Agent Problem

question 97

Multiple Choice

The existence of the principal-agent problem

• A)increases the risk of buying stock in a corporation.
• B)increases the risk of becoming the sole proprietor of a business.
• C)implies that managers that have the same incentives as the board of directors.
• D)does all of the above.

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Definitions:

Experienced Abuse

Having been subjected to harmful or injurious treatment or behavior, often repeatedly or over a period of time.

Physical Abuse

The intentional use of force against someone, causing harm or injury.

Sexual Abuse

Any unwanted sexual activity, with perpetrators using force, making threats or taking advantage of victims not able to give consent.

Motivated Forgetting

A psychological theory suggesting individuals may unconsciously forget memories that cause stress or anxiety.