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Karolina [17]
4 years ago
13

What is the principal-agent problem?A) It is a problem of the power system of boss and subordinate where the boss (principal) ex

erts influence over his subordinates (agents) using punishment or threat.B) It is a problem that exists when a person (principal) has more information about the task than the agent he hires to perform the task.C) It is a problem caused by a person (principal) who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way.D) It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them.
Business
1 answer:
ycow [4]4 years ago
5 0

Answer: The correct answer is D) It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them.

Explanation: A principal in the context of a business is the owner of the business which in most cases are the shareholders. While the agents are those employed or hired to engage in the day to day activities of the business.

The principal most often aims to maximise shareholders wealth. Principal- agent problem may arise where the agent s of the business put their interests as priority as against the interests of the principal. Such interests of the agents may be to earn bonuses even if it would jeopardize the growth of the organisation.This is an ineffective way of running an organization.

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"When organizing a meeting agenda, why is it a good idea to discuss old business before introducing new business?"
AleksAgata [21]

Answer:

c. It makes sense to complete discussion and reach decisions about old business before tackling new business.

Explanation:

For organizing a meeting agenda first we have to discuss for the old business as it gives the whole picture of the business i.e it is profitable or not that results in increase in sales of the company that reflected completed discussion.

Moreover, the organization also knows how to operates the day to day activities that are related to the functions of management

So it always it is better to make decisions for old business before tackling the new business

8 0
4 years ago
Firms in which market structure hold the most market power? monopolistic competition monopoly oligopoly perfect competition
Oxana [17]
Monopoly. A good way to remember this is that "mono" means "one" so, they are always #1 when it comes to market power.
5 0
3 years ago
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Which of the following statements about federal taxes is TRUE? Everfi
Elanso [62]

Answer:

Federal takes are money you earn from working at a job.

Explanation:

4 0
3 years ago
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In economics, who must make the goods and services that exist?
Naily [24]

Businesses/producers make the goods and services that exist in the economy. Producers create goods or services that are available for consumers to purchase so that they are making a profit. Consumers need to be interested in the goods or services available so that the companies stay in business and help drive the economy.

8 0
3 years ago
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Suppose that Marie is buying bananas. She decides that she would like to purchase three bananas at the price of $0.25 per banana
dmitriy555 [2]

Answer:

The correct answer is letter "C": marginal thinking.

Explanation:

Marginal Cost of Production is an economic term that refers to the change in production costs resulting in producing one more unit. It is most often used within manufacturers as a means of identifying an optimum production level. The formula to calculate the cost of production is the change in total production cost divided by the change in total quantity produced.

As Marie is analyzing the extra benefit and cost of buying one more banana,  economists would say she is performing "<em>marginal thinking</em>".

6 0
3 years ago
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