The Principal-Agent Problem Suggests That

Multiple Choice

The principal-agent problem suggests that

A) principals and agents always have the same goals.
B) principals and agents will never have the same goals.
C) principals and agents are more likely to have the same goals if the principal gives the agent flexibility to make his own decisions.
D) principals and agents are more likely to have the same goals if the agent's pay is tied to satisfying the principal's goals.