Which One of the Following Situations Is Most Likely to Create

Multiple Choice

Which one of the following situations is most likely to create an agency conflict?

A) compensating a manager based on his or her division's net income
B) giving all employees a bonus if a certain level of efficiency is maintained
C) hiring an independent consultant to study the operating efficiency of the firm
D) rejecting a profitable project to protect employee jobs
E) selling under-performing assets owned by the firm