One Reason for the Existence of Agency Problems Between Managers

question 81

Multiple Choice

One reason for the existence of agency problems between managers and share holders is that

• A) there is a separation of ownership and control of the firm.
• B) managers know how to manage the firm better than shareholders.
• C) shareholders have unreasonable expectations about managerial performance.
• D) none of the above

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Definitions:

Variable Rate

An interest rate that can change over the duration of a loan, typically based on underlying benchmarks or indexes affecting the cost of lending.

LANs

Local Area Networks, a computer network that interconnects computers within a limited area such as a residence, school, or office building.

On-demand Self-service

On-demand self-service refers to the provision of services, resources, or information that can be accessed by users autonomously and immediately when needed, typically over the internet.

Elasticity

Elasticity refers to the economic concept describing the change in the behavior of buyers and sellers in response to a change in price or other factors.