Asked by Tu?çe Ca?k?r on Sep 24, 2024
Verified
Which of the following is a way to reduce agency costs?
A) Change the decision maker
B) Transferring information to the decision maker
C) Change the decision maker's incentives
D) All of the above
Agency Costs
Expenses arising from the conflict of interest between a company's management and its shareholders.
Incentives
Motivators or rewards given to encourage specific actions or behaviors by individuals or groups.
Decision Maker
An individual or entity responsible for making choices, often involving the selection of strategies, policies, or solutions in personal, business, or governmental contexts.
- Pinpoint solutions for overcoming obstacles posed by principal-agent problems in business structures.
Verified Answer
Learning Objectives
- Pinpoint solutions for overcoming obstacles posed by principal-agent problems in business structures.
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