Which one of the following situations is most apt to create an agency conflict?
A) Compensating a manager based on his or her division's net income
B) Giving all employees a bonus if a certain level of efficiency is maintained
C) Hiring an independent consultant to study the operating efficiency of the firm
D) Basing management bonuses on the length of employment
E) Laying off employees during a slack period
Correct Answer:
Verified
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