Agency Theory

question 27

Multiple Choice

Agency theory

• A)does not look at behaviour at all
• B)looks at management behaviour and employees
• C)looks at inter-management behaviour
• D)looks at the link between management behaviour and shareholders interest

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Definitions:

Fixed Prices

Prices that do not change in response to market conditions.

Corporate Taxes

Government levies placed on the earnings or profits of businesses.

Economic Environment

The total of economic factors, such as employment, income distribution, and investment opportunities, that influence the behavior of consumers and businesses.

Smoot-Hawley

Refers to the Smoot-Hawley Tariff Act of 1930, which raised U.S. import tariffs on thousands of goods, leading to significant trade reductions worldwide.