menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Managerial Economics
  4. Exam
    Exam 6: The Organization of the Firm
  5. Question
    A Drawback of Separating Ownership from Control by Creating a Firm
Solved

A Drawback of Separating Ownership from Control by Creating a Firm

Question 136

Question 136

Multiple Choice

A drawback of separating ownership from control by creating a firm is:


A) The losses of specialization.
B) Increased transaction costs.
C) The principal-agent problem.
D) Synergies of team production.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q64: Discuss the benefits and costs of the

Q69: A firm manager is an agent hired

Q84: The presence of minimal specialized investments relative

Q97: A potential problem with paying workers based

Q116: The most commonly used negative incentive used

Q122: The presence of substantial specialized investment relative

Q132: Which type of compensation method does not

Q135: The specificity of the asset (or investment)

Q137: An increase in the likelihood of a

Q139: The principal's goals are not in line

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines