Which of the following could explain why bad management teams continue to be employed by a firm?
A) The shareholdings in the firm are highly dispersed.
B) Ownership and control in the firm are not separate.
C) The shareholders' objective is to maximize the firm's profits.
D) The objectives of managers and workers in the firm are closely aligned with each other.
Correct Answer:
Verified
Q7: Which of the following correctly describes moral
Q8: Moral hazard can be reduced at the
Q9: Pro?ts may decline when sales increase if:
A)
Q10: The senior manager at a firm sets
Q11: Which of the following is an example
Q13: Which of the following forms of organization
Q14: The principal-agent problem arises when:
A) principals and
Q15: Which of the following is a solution
Q16: _ is most likely to be a
Q17: Satis?cing behaviour would NOT involve:
A) separation of
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