The Root Cause of the Principal-Agent Problem Between Senior Executives

Multiple Choice

The root cause of the principal-agent problem between senior executives and lower-level employees can be explained by the

A) informational advantage of the lower-level employees.
B) higher number of lower-level employees than senior executives.
C) knowledge of employees regarding day-to-day tasks.
D) operational expertise of lower-level employees in concentrated areas of a particular field.