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
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
Leave my job in order to stay with my lover, then find a new position as a counselor somewhere else. Loving someone is epic I would say, it’s not as “replaceable” as a job
