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Ivenika [448]
3 years ago
6

Managerial reputation is an _____ incentive that helps to mitigate the _______ principal-agent problem. Multiple Choice

Business
1 answer:
Serggg [28]3 years ago
7 0

Managerial reputation is an <u>External </u> incentive that helps to mitigate the <u>Owner-manager </u> principal-agent problem.

Explanation:

<u>The theory of incentive  propose that the  behavior of an individual  is motivated by the “pull” of external goals, such as rewards, money, or recognition. </u>

In many situations in which a particular goal, such as a promotion at work, can serve as an external incentive that helps activate particular behaviors in an employee

<u>Monetary incentives means to  reward the workers for their  performance and productivity through money. </u>

<u>Monetary incentives also  include employee stock options, profit sharing plans, paid time off, bonuses and cash awards.</u>

<u />

<u>So we can say that </u>

Managerial reputation is an <u>External </u> incentive that helps to mitigate the <u>Owner-manager </u> principal-agent problem.

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