The answer & explanation for this question is given in the attachment below.
Answer:
Increasing current profits when doing so lowers the value of the firm's equity.
Explanation:
Agency problem is the likelihood that managers may place personal goals ahead of corporate goals. A characteristic feature of corporate enterprises is the separation between ownership and management. Thus, with the objective of survival, management would aim at satisfying instead of maximizing shareholder´s wealth.
Three generic agency problems arise in business firms:
-The conflict between the firm´s owners and its hired managers.
-The conflict between controlling and minority shareholders.
-The conflict between shareholders and non shareholders constituencies.
Answer:
C. honorarium paid to the secretary
Explanation:
<span>Thomas earned the last month = $184
Sharlina earned the last month = $207
GCF (Greatest Common Factor) = 207-184
= 23
Thomas working the last month = Total earned/GCF
= 184/23
= 8
Hence the Thomas worked for 8 days
Similerly,
Sharlina working the last month = Total earned/GCF
= 207/23
= 9
Hence the Sharlina worked for 9 days</span>