Asked by Trent Franklin on Jun 27, 2024
Verified
Which of the following addresses agency costs?
A) advertising for employee positions in as many outlets as possible
B) requiring employees to punch time clocks
C) instituting longer work days
D) reducing the number of holidays
Agency Costs
Costs incurred from conflicts of interest among stakeholders, particularly between management (agents) and shareholders (principals).
Advertising
The process or career involved in creating promotional material for goods or services.
Time Clocks
Devices used by employers to record the number of hours worked by employees, ensuring accurate tracking of time for payroll purposes.
- Pinpoint approaches to minimize the expenses related to agency issues.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
B
Explanation :
Requiring employees to punch time clocks can help address agency costs by ensuring that employees are spending their time on work-related activities instead of personal activities. By monitoring employee time more closely, the company can reduce the risk of employees shirking their responsibilities or engaging in other behaviors that could ultimately harm the company. The other options do not directly address agency costs.
Learning Objectives
- Pinpoint approaches to minimize the expenses related to agency issues.