A combination of well-designed management compensation contracts,the market for corporate takeovers,and a well-informed labour market shoulD.
A) Not be necessary as any one of these methods will control a manager's actions.
B) Ensure that managers only act in their own self-interest.
C) Mean that, on average, managers work in the best interests of owners.
D) Remove any monitoring and bonding costs required under PAT.
E) Guarantee that managers will always work in the best interests of owners.
Correct Answer:
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Q21: From an efficiency perspective of PAT,what approach
Q22: Debt contracts will:
A) Stipulate in advance all
Q23: Using the PAT perspective of managers' behaviour,the
Q24: Under the efficiency perspective of PAT,where regulation
Q25: Examples of behaviours that create agency costs
Q27: Criticisms of PAT include.
A) It does not
Q28: In a market where individuals are perfectly
Q29: Firms are subject to political costs when:
A)
Q30: An example of political costs under the
Q31: In the situation where a contractual arrangement
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