Principal-Agent Problems Are Less Likely to Arise

question 187

Multiple Choice

Principal-agent problems are less likely to arise

• A)if it is easy for principals to know agents' actions and if there is less conflict between their goals
• B)if it is difficult for principals to know agents' actions and if there is less conflict between their goals
• C)if it is easy for principals to know agents' actions and if there is some difference in their goals
• D)if it is difficult for principals to know agents' actions and if there is some difference in their goals
• E)if agents have higher incomes

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Definitions:

Behavioral

Relating to the actions or reactions of persons or organisms under specific conditions.

Chase Visa Fuel Card

A branded Visa card offered by Chase Bank that provides users with benefits or discounts on fuel purchases.

More Than Once a Week

A frequency indicating that an event or action happens multiple times within a seven-day period.

80/20 Rule

A principle asserting that 80% of outcomes come from 20% of all causes for any given event.