3. Individual Problems 21-3 Which of the following is a characteristic of principal-agent conflicts that often exist in a firm? O Firms can usually find solutions that reduce agency costs without increasing monitoring or incentive costs. O Managers do not always operate in the best interest of owners because owners are generally more risk averse than managers. O Managers do not always operate in the best interest of owners because managers care about the noncash benefits of their jobs.
3. Individual Problems 21-3 Which of the following is a characteristic of principal-agent conflicts that often exist in a firm? O Firms can usually find solutions that reduce agency costs without increasing monitoring or incentive costs. O Managers do not always operate in the best interest of owners because owners are generally more risk averse than managers. O Managers do not always operate in the best interest of owners because managers care about the noncash benefits of their jobs.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter1: Introduction And Goals Of The Firm
Section: Chapter Questions
Problem 2E
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