Which of the Following Is an Example of an Agency

question 29

Multiple Choice

Which of the following is an example of an agency problem?

• A) managers not working as diligently if they are not the sole owner of the business
• B) the board of directors firing an incompetent manager
• C) the manager owning a great deal of stock in the company
• D) a corporate raider attempting to purchase the company

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Definitions:

Misdemeanor

A criminal offense considered less severe than a felony, often punishable by fines or short term imprisonment.

RICO

RICO, the Racketeer Influenced and Corrupt Organizations Act, is a federal law aimed at combating organized crime by allowing prosecution and civil penalties for racketeering activity.

Criminal Penalties

Punishments imposed by the court system for committing acts that violate criminal law, including fines, imprisonment, or probation.

Civil Penalties

Civil penalties are fines or other forms of punishment imposed by a governmental agency for violations of regulatory laws or ordinances, not involving criminal prosecution.