Asked by Kolbie Dickerson on Sep 24, 2024
Verified
Which of the following addresses agency costs?
A) spot checks of the quality of employee work
B) hiring only from job fairs
C) instituting longer work days
D) reducing the number of holidays
Agency Costs
Expenses incurred due to conflicts of interest between shareholders and management, typically including monitoring, contracting, and opportunity costs.
Spot Checks
Random inspections or audits conducted without prior notice to ensure compliance or quality.
Employee Work
The tasks and duties performed by an individual employed by an organization.
- Identify strategies to mitigate agency costs.
Verified Answer
MI
Marian Inguito3 days ago
Final Answer :
A
Explanation :
Spot checks of employee work can help reduce agency costs by ensuring that employees are performing their duties at a satisfactory level and are not shirking responsibilities. This can help prevent the need for additional oversight or management, and can prevent the potential for errors or inefficiencies, which can ultimately lead to higher costs for the company. Hiring from job fairs, instituting longer work days, or reducing the number of holidays may not directly address agency costs.
Learning Objectives
- Identify strategies to mitigate agency costs.