Which of the following firms is most likely to suffer from principal-agent problems?
A) A young firm in a growth industry
B) A mature firm with few growth opportunities
C) A mature firm with few growth opportunities and which is controlled by its management
D) A mature firm with few growth opportunities and which, though being controlled by its managers, has highly concentrated stock ownership
Correct Answer:
Verified
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A)the difficulty of distinguishing
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A)shareholders.
B)management.
C)marketing department.
D)customers.
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A)generally require that firms use debt
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