Asked by Alberto Manifacio on Sep 24, 2024

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​The ways to address agency costs include all EXCEPT

A) ​advertising for employee positions in as many outlets as possible
B) requiring employees to punch time clocks
C) spot checks of the quality of employee work
D) ​replacing closed offices with cubical office spaces

Time Clocks

Devices used to record the beginning and end of workers' working hours.

Agency Costs

The expenses related to conflict of interests between stakeholders, such as owners and managers, in a corporation, often involved in monitoring and aligning interests.

Advertising

The activity or profession of producing advertisements for commercial products or services.

  • Recognize techniques to lower the financial burdens of agency discrepancies.
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MM
manjeetsingh malhi3 days ago
Final Answer :
A
Explanation :
Agency costs are expenses incurred due to the problems that arise from a conflict of interest in a principal-agent relationship. The options B, C, and D are methods to monitor or improve employee performance and reduce agency costs by ensuring that employees are working efficiently and effectively. However, A (advertising for employee positions in as many outlets as possible) is not a method to address agency costs; it is related to recruitment strategies and does not directly impact the monitoring or alignment of employee interests with those of the organization.