What is the most common way that principal-agent problems are addressed in most corporations?
A) by minimizing the number of decisions that a manager makes where there is a conflict between the managers interests and those of the shareholders
B) by terminating the employment of employees who are found to have put their own interests above those of the company
C) by using disinterested outside bodies to adjudicate between managers and shareholders when such conflicts arise
D) by prosecuting managers who have been found to have illegally used company moneys for their own benefit
E) by paying the managers high salaries to encourage them to act in the company's interests.
Correct Answer:
Verified
Q40: It is generally not the duty of
Q46: A typical company has many types of
Q47: A company's board of directors chooses to
Q48: How do the shareholders of most corporations
Q49: Why in general do financial managers make
Q50: What is the principal guiding factor for
Q52: What is the most important duty of
Q54: What are the responsibilities of the board
Q55: Which of the following would be best
Q56: Who is typically responsible for the day-to-day
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents