Which of the following are generally used to solve agency problems?

Question

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Governance mechanisms are generally used to solve agency problems. Governance mechanisms include board of directors, executive compensation, shareholder activism, and monitoring and reporting mechanisms. Ethics Credo's can help promote ethical behavior but may not necessarily solve agency problems. Principles not susceptible to moral hazard is not a commonly used term in solving agency problems. A more authoritarian management structure can lead to other issues such as employee dissatisfaction and turnover.

Which of the Following Are Generally Used to Solve Agency