Multiple Choice
The CEO and stockholders are not necessarily the same people.This gives rise to
A) upstream and downstream contracts.
B) a principal-agent problem.
C) complete contracts.
D) a control over moral hazard.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Owners claim residual income.
Q4: Stockholders have little incentive to monitor<br>A)managers.<br>B)stock markets.<br>C)stock
Q6: Firms serve similar functions to<br>A)courts.<br>B)governments.<br>C)markets.<br>D)all of these
Q6: The structure of an organization is influenced
Q7: Risk is shifted to the owners of
Q9: If firms were teams then there would
Q12: The CEO and stockholders talk almost everyday.
Q13: The scope of a firm refers to
Q16: Upstream and downstream refer to the degree
Q25: Make or buy decisions affect the degree