Multiple Choice
A principal-agent problem occurs when hiring workers to work for a firm because
A) workers' interests are not always the same as the interests of the owners of the firm.
B) workers do not respond to incentives.
C) the owners of a firm are always in a position to exploit the workers.
D) workers' interests are not important in the managerial decisions of the firm.
Correct Answer:
Verified
Correct Answer:
Verified
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