Which of the following is not a problem in owner-manager or principal-agent conflicts?
A)Choice of effort
B)Perquisite taking
C)Identical time horizons
D)Differential risk exposure

Question

Quizplus · Accepted Answer

Identical time horizons refer to the fact that both the owner-manager and principal-agent have the same time frame for their goals and objectives. This is not generally seen as a problem in owner-manager or principal-agent conflicts. However, choice of effort, perquisite taking, and differential risk exposure are all potential problems that can occur in these types of conflicts.

Which of the Following Is Not a Problem in Owner-Manager