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  3. Study Set
    Managerial Economics
  4. Exam
    Exam 15: Principalagent Issues and Managerial Compensation
  5. Question
    A Technique for Dealing with the Principal-Agent Problem Is To
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A Technique for Dealing with the Principal-Agent Problem Is To

Question 1

Question 1

Multiple Choice

A technique for dealing with the principal-agent problem is to:


A) require managers to purchase shares of stock in the firm.
B) establish a profit-sharing plan for managers.
C) establish year-end bonuses based on the profits of the firm.
D) all the above.
E) none of the above.

Correct Answer:

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