Asked by Wesly Amores on Sep 24, 2024

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​The ways to address agency costs include all EXCEPT

A) ​running background checks on prospective employees
B) requiring employees to punch time clocks
C) spot checks of the quality of employee's work
D) ​providing better coffee machines in the lunch room

Agency Costs

Costs that arise from conflicts of interest between principals (owners) and agents (managers), including monitoring and incentive expenses.

Background Checks

The process of verifying the personal, financial, and criminal history of an individual, commonly undertaken by employers.

Time Clocks

Devices used to track the hours worked by employees, often by punching a card or logging in digitally.

  • Identify strategies to address agency costs within an organization.
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Manasseh Waweru1 day ago
Final Answer :
D
Explanation :
Providing better coffee machines in the lunch room is not a way to address agency costs. The other options (background checks, time clocks, spot checks) aim to mitigate agency problems by incentivizing employees to perform well and reducing opportunities for shirking or fraud.