Multiple Choice
Which of the following is the main assumption of the principal- agent model?
A) Principals will work diligently for agents provided they are offered incentives.
B) Agents will not work diligently for principals unless incentives are carefully and appropriately aligned.
C) Principals will not work diligently for agents unless incentives are carefully and appropriately aligned.
D) Agents will work diligently for principals provided they are offered incentives.
Correct Answer:
Verified
Correct Answer:
Verified
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