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TiliK225 [7]
3 years ago
13

By tying a manager's compensation to the performance of the firm relative to that of its competitors, corporate stockholders and

directors create incentives that tend to resolve the A. principal–agent problem. B. hidden agenda scenario. C. possibility of bankruptcy. D. firm's opportunity costs.
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
4 0

Answer:

The correct answer is letter "A": principal-agent problem.

Explanation:

The principal-agent problem arises when a principal employs an agent to perform duties that conflict with the agent's best interests. The problem typically occurs when the principal provides the agent with incentives that act in the principal's interest but is for the agent a conflictive agenda. In the managerial world, the principal-agent problem usually occurs between stockholders and the CEO (Chief Executive Officer).

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Select the correct answer
arlik [135]
It is B. passive income
5 0
2 years ago
Read 2 more answers
The management of GH Apparel has thoroughly analyzed the market and recognizes the wants and needs of different customer groups.
Sergio039 [100]

Answer: Market-oriented

Explanation:

 The market oriented organization is one of the type of business approach that producing the various types of products and the services according to the customer requirement or desire.

The main aim of the market oriented organization is that they focus on the selling and also designing goods and the services that satisfied the consumer desire.  

According to the given scenario, the management of the GH apparel is the market oriented organization as it properly analyzed the market and also recognize the actual requirement of the customer.  

Therefore, Market-oriented is the correct answer.

5 0
3 years ago
Evidence by Blake, Elton, and Gruber indicates that, on average, actively managed bond funds ______. outperform passive fixed-in
Andrei [34K]

Answer:

The answer is: underperform passive fixed-income indexes by an amount equal to fund expenses

Explanation:

According to Blake, Elton, and Gruber (The Journal of Business, 1993), the only people who benefit from actively managed bond mutual funds are those that work for the mutual funds and not their clients.

They discovered that when the mutual funds increased their fees in 1%, the total performance decreases in 1%.

7 0
3 years ago
Which of the following are critical elements of Free Enterprise?
Grace [21]

Answer:

B

Explanation:

I have this also its the freedom to choose.

6 0
2 years ago
a landlord can avoid liability for injuries that occur on rental property by including an exculpatory clause in the lease. True
GaryK [48]

False, by including an exonerating clause in the lease, a landlord can avoid being held responsible for accidents that take place on rental property.

Homes bought by an investor and leased to tenants under some other form of rental agreement are referred to as residential rental property. The term "rental property" refers to a piece of residential real estate that a borrower owns outright or acquires, as well as all improvements thereon, as well as all other rights, benefits, and earnings derived from or related to such property. Typically, a rental property should have a ROI of more than 10%, while 5% to 10% can still be considered appropriate. Due to the up-front costs of home ownership, however, the ROI might be lower in the first year. Fixer-uppers typically have a lower list price than turnkey homes, which can result in greater upfront savings.

Learn more about rental property here

brainly.com/question/23513727

#SPJ4

6 0
1 year ago
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