A divorce of ownership from control creates problems such as
A) there are no problems as this gives the owner time to do other things.
B) conflicts between the objectives of managers and owners.
C) tax revenues may be lower.
D) managers may be better at running the business than the owner, thus removing the owner from the decision- making process.
Correct Answer:
Verified
Q3: Transaction costs are caused by
A) the
Q4: The existence of transaction costs on an
Q5: The traditional theory of the firm assumes
Q6: If we employ someone to carry out
Q7: The principal- agent problem arises because of
Q9: The divorce of ownership and control tends
Q10: The divorce of ownership and control causes
Q11: Which of the following statements is false?
Q12: Which of the following decisions would you
Q13: If a business is owned by _it
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