The general monitoring problem implies that:
A) profit maximization should always be a firm's goal.
B) there is a cost of supervising employees so that they work toward the owner's goals rather than their own.
C) government must intervene to protect national goals.
D) competition will ensure common goals among the owners and managers of a firm.

Question

Quizplus · Accepted Answer

The general monitoring problem highlights the cost and necessity of supervising employees to ensure they align with the owner's objectives, rather than pursuing their own interests.

The General Monitoring Problem Implies That