Which of the Following Offers an Explanation as to Why

question 60

Multiple Choice

Which of the following offers an explanation as to why the principal-agent problem exists for a firm?

• A)The firm cares less about profit and more about cost when there are many competitors in the market.
• B)The firm offers an employee-incentive program in which employees share in the firm's profits.
• C)The firm operates in a market with many competitors forcing the firm to pay its employees more to keep them from switching to another firm.
• D)The firm operates to maximize profit while the employees attempt to work as little as possible to earn their paychecks.

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Definitions:

Sublimation

Channeling unconscious impulses into work.

Death Metal Band

A genre of heavy metal music characterized by intense, fast-paced rhythms and growling vocals, often with morbid and dark thematic content.

Rationalization

An attempt to logically justify one's behavior or feelings with plausible explanations, often to conceal the true reasons.

Repression

Keeping the unconscious from consciousness by pushing it away.