Asked by Priscila Palomeque on Sep 24, 2024
Verified
Which of the following addresses agency costs?
A) advertising for employee positions in as many outlets as possible
B) hiring only from job fairs
C) spot checks of the quality of employee work
D) reducing the number of holidays
Agency Costs
Expenses that arise from conflicts of interest between principals (such as shareholders) and agents (such as managers) within a corporation.
Spot Checks
Random inspections or audits conducted without prior notice to ensure compliance or verify the quality of ongoing activities.
Quality
How well a product or service fulfills or goes beyond what customers anticipate.
- Recognize techniques to lower the financial impact of agency issues in an organization.
Verified Answer
PE
precious emmanuel3 days ago
Final Answer :
C
Explanation :
Spot checks of employee work can help address agency costs by ensuring that employees are performing their duties effectively and efficiently, reducing the likelihood of wasted resources or shirking. A, B, and D are not directly related to agency costs.
Learning Objectives
- Recognize techniques to lower the financial impact of agency issues in an organization.