One Reason for the Existence of Agency Problems Between Managers

question 80

Multiple Choice

One reason for the existence of agency problems between managers and stockholders is that:

• A) Management is separate from and ownership.
• B) managers know how to manage the firm better than stockholders.
• C) stockholders have unreasonable expectations about managerial performance.
• D) none of the above.

---

Definitions:

Repeat Buyers

Consumers who make multiple purchases from the same brand or vendor, demonstrating brand loyalty or satisfaction with the product or service.

Industry Wide Markets

Markets that span across an entire industry, affecting all organizations within that industry.

Low-Cost

Describes products or services offered at a price lower than the market average to attract cost-sensitive consumers.

Differentiation

Relates to distinguishing or creating differences between products, services, or organizational entities to create a competitive advantage.