Which of the Following Must a Principal Do to Reduce

question 31

Multiple Choice

Which of the following must a principal do to reduce agency costs?

• A)Encourage the agent to maximize his or her benefits
• B)Provide complete autonomy to the agent
• C)Discourage the agent from pursuing projects with high potential payoffs
• D)Increase information asymmetry and goal congruence
• E)Align the agent's interests with the principal's interests

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Definitions:

Ethnographic Research

A qualitative research method focused on studying cultures and communities through direct observation, participant observation, and other immersive techniques.

Transgendered Person

An individual whose gender identity or expression differs from what is typically associated with the sex they were assigned at birth.

Variety

The quality or state of being diverse or varied, offering a wide range of different options or elements.

Qualitative Research

A research method focusing on understanding phenomena through detailed, subjective descriptions and analysis rather than numerical data.