The principal-agent problem is a problem
A) caused by a person (principal) who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way.
B) caused by agents pursuing their own interests rather than the interests of the principals who hired them.
C) of the power system of boss and subordinate where the boss (principal) exerts influence over his subordinates (agents) using punishment or threat.
D) that exists when a person (principal) has more information about the task than the agent he hires to perform the task.
Correct Answer:
Verified
Q47: In the principal-agent relationship,the principal is
A)the owner
Q48: Briefly explain what you would expect to
Q49: In the United States in 2016,the health
Q50: The Pre-Existing Condition Insurance Plan is a
Q51: A majority of people in the United
Q53: If a hospital knows that an insurance
Q54: Although most large firms in the United
Q55: What is health insurance?
Q56: Consumers usually pay less than the total
Q57: What is the term that describes a
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