Incentive problems in a business can lead to:
A)wealth maximization.
B)full employment of resources.
C)risk reduction.
D)ethical problems.

Question

Quizplus · Accepted Answer

Incentive problems in a business can lead to ethical problems such as conflicts of interest, unethical behavior, or manipulation of information to achieve personal gain. While incentive problems may also affect wealth maximization, full employment of resources, and risk reduction, these are not direct consequences of such problems, but rather potential outcomes depending on how the incentives are designed and implemented.

Incentive Problems in a Business Can Lead To