1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Karolina [17]
3 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]3 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.

You might be interested in
Select the correct answers. At which stage of the product life cycle does a product reach its peak in terms of sales and profits
Ostrovityanka [42]

Answer:

D. maturity

Explanation:

A product life cycle is divided into four, namely, introduction,  growth, maturity, and decline. The concept of the product life's cycle is used as a decision-making tool to help management know when to expand to new markets, increase advertising, adjust prices, or redesign a product.

The maturity cycle is the third stage of a product life cycle. At this stage, sales revenues and sale volume reach the peak. The market get saturated with very few new customers. The product growth becomes stagnant. Profits may begin to decline at this stage.

3 0
3 years ago
Ben is working on a marketing campaign for luxury homes. His target customers are those that want to move to that state. Ben wan
baherus [9]
Answer to your question is B
7 0
3 years ago
Read 2 more answers
How much must be deposited today in an account earning 6% annually to accumulate a 20% down payment to use in purchasing a car o
goblinko [34]
Hi there
The price of the car after a year would be
20,000×(1+0.04)
=20,800 because of inflation

The amount of down payment is
20,800×0.2
=4,160

So you need to deposit
P=4,160÷(1+0.06)
p=3,924.5 round your answer to get
P=3925

Hope it helps
8 0
3 years ago
On September 3, 2018, Able, a single individual, purchased § 1244 stock in Red Corporation from his friend Al for $60,000. On De
klio [65]

He should ask them why it was worthless then after a while of thinking maybe have and idea on how to use it again

8 0
3 years ago
If the price of walnuts rises, many people would switch from consuming walnuts to consuming pecans. But if the price of salt ris
lilavasa [31]

Answer:

b

Explanation:

4 0
2 years ago
Other questions:
  • A marketing plan includes this marketing objective: "Create positive feelings about our brand." What is the main problem with th
    14·2 answers
  • How many CTSOs are there?
    14·1 answer
  • A firm's operations drive its structure. <br> a. True <br> b. False
    12·1 answer
  • Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their feres
    13·1 answer
  • Which of the following statements is NOT true concerning the Other Dependent Credit
    14·2 answers
  • Two weeks before his performance appraisal, John successfully resolved a service complaint involving one of the company’s most i
    15·1 answer
  • When a firm or store offers a price reduction to customers who buy during off-peak periods throughout the year, we say the firm
    15·1 answer
  • 5. A nation's frictional unemployment rate is 1%. Its cyclical rate of unemployment is 9.7%, and its structural
    7·1 answer
  • Empower Inc., is a software development firm that firmly believes in common unspoken assumptions along the lines of conventional
    14·1 answer
  • NEED HELP ASAP, WILL GIVE BRAINLIEST
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!