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lutik1710 [3]
3 years ago
9

Because managers (________) have less incentive to maximize profits than the stockholders-owners (________) do, stockholders fin

d it costly to monitor managers; thus, they are reluctant to purchase equities.
a. agents; agents
b. agents; principals
c. principals; agents
d. principals; principals
Social Studies
1 answer:
Fudgin [204]3 years ago
7 0

Answer:

b.

Explanation:

The manager is an agent of th stockholders-owners, who is the principal

An agent is like a representative and should act in the interest of the principal, but as the interest of the two may conflict, you have this agent-principal problem

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