Which of the Following Contributes to Principal-Agent Problems in Large

Multiple Choice

Which of the following contributes to principal-agent problems in large modern firms?

A) The dispersion of information among many decision makers
B) The consolidation of management and ownership in a single entity
C) The specialization of labor.
D) The agreement between managers of different departments to increase profits at any cost
E) The use of in-house production rather than outsourcing.