Microeconomics Study Set 26
Quiz 10: Organizing Production
The Possibility That the Managers of a Corporation Might Not
The possibility that the managers of a corporation might not always act in the best interest of its owners is an example of the principal-agent problem.
Explore answers and all related questions
The only two ways of dealing with the principal agent problem are the use of long-term contracts and monitoring.
The decision about whether a firm in each particular industry must operate as a proprietorship, partnership, or corporation is made by the Internal Revenue Service.
Proprietorships generally have unlimited liability, whereas partnerships and corporations have limited liability.
Explore all questions
How it work
Terms And Conditions
© 2020-2021 Cozyplus FZ LLC. All rights reserved