A Company Scientist at a Biotechnology Company Decides to Work

Multiple Choice

A company scientist at a biotechnology company decides to work on his own research project, hoping to eventually start his own firm, rather than on the project he was assigned. However, the company's stockholders are unaware of this situation. This is an example of a(n) ________ in the context of a principal-agent problem.

A) adverse selection
B) stakeholder strategy
C) moral hazard
D) shared value creation