The Agency Problem That Can Occur Between Managers and Shareholders

question 80

Multiple Choice

The agency problem that can occur between managers and shareholders is sometimes solved by performing ________.

• A) audits
• B) mergers or acquisitions
• C) incentive alignment
• D) restructuring

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Definitions:

Non-Self-Actualizers

Individuals who have not realized their full potential or reached the highest level of Maslow's hierarchy of needs, often due to unmet lower-level needs.

Procrastination

The action of delaying or postponing tasks, decisions, or actions, often due to avoidance of stress or discomfort associated with the task.

Self-Actualization

Fulfilling or actualizing one's potential and talents, viewed as a compelling urge or essential need within each person.

Deficiency Needs

Basic human requirements that must be met for an individual to grow psychologically, as identified by Abraham Maslow, including physiological, safety, love, and esteem needs.