Which of the following is NOT a solution to the manager-worker principal-agent problem?

Question

Quizplus · Accepted Answer

The threat of a takeover is not a solution to the manager-worker principal-agent problem. This problem focuses on aligning the interests of managers (agents) with those of the owners or shareholders (principals). Solutions like revenue sharing, profit sharing, and monitoring mechanisms (time clocks and spot checks) are direct methods to align these interests. The threat of a takeover is more related to corporate governance and the alignment of interests between shareholders and managers, rather than the manager-worker dynamic.

Which of the Following Is NOT a Solution to the Manager-Worker