Setting Up a Short-Term Lease Initially Is One of the Ways

question 32

True/False

Setting up a short-term lease initially is one of the ways to handle an early termination of business.

---

Definitions:

Principle Agency Problem

A situation in corporate governance where the interests of principals (owners) diverge from those of agents (managers), leading to potential conflicts.

Incentive

A benefit or reward intended to motivate or encourage a specific action or behavior in economic or organizational contexts.

Decision Maker

An individual or entity responsible for making choices that will impact outcomes in a business, policy, or personal context.

Agency Costs

Expenses arising from the conflict of interest between a company's management and its shareholders.