Which one of the following situations is most apt to create an agency conflict?
A) Compensating a manager based on his or her division's net income
B) Giving all employees a bonus if a certain level of efficiency is maintained
C) Hiring an independent consultant to study the operating efficiency of the firm
D) Rejecting a profitable project to protect employee jobs
E) Selling an underproducing segment of the firm
Correct Answer:
Verified
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