Asked by Heman Abundiz on Sep 24, 2024

​In an ideal organization,when do agents always make decisions in the best interests of their principle?

A) ​The decision makers have the information necessary to make the decision
B) The decision makers have the incentive to make the right decision
C) All of the above
D) ​None of the above

Ideal Organization

A theoretical or model entity that operates with maximum efficiency, effectiveness, and ethics in achieving its goals.

Decision Makers

Individuals or groups responsible for making choices that affect the outcomes of various strategies and operations within organizations.

Information

Data that has been processed, organized, or structured in a way that adds to its meaning or usefulness for decision-making.

  • Perceive the contrast in the objectives of principals and agents within their partnership.
  • Grasp the concept of monitoring and its importance for the principal in evaluating and incentivizing agent performance.