Which of the following is not a problem in owner/manager (principal/agent) conflicts?
A) Choice of effort.
B) Perquisite taking.
C) Identical time horizons.
D) Differential risk exposure.

Question

Quizplus · Accepted Answer

Identical time horizons is not a problem in owner/manager conflicts because it means that both the owner and the manager have the same time frame for achieving their goals, which can actually help reduce conflicts. The other options - choice of effort, perquisite taking, and differential risk exposure - are all common problems in these conflicts. Choice of effort refers to the manager's decision to work hard or slack off, which can impact the owner's profits. Perquisite taking occurs when a manager takes advantage of their position to receive benefits or perks that are not justified by their performance. Differential risk exposure refers to the fact that owners and managers may have different levels of risk tolerance, which can affect decision-making and lead to conflict.

Which of the Following Is Not a Problem in Owner/manager