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Title: The principal-agent problem in corporations exists because the managers of a firm: Post by: Satsume on Oct 25, 2017 The principal-agent problem in corporations exists because the managers of a firm
A) may pursue their own goals even when the result is lower profit for owners. B) may know how to operate the business better than absentee owners do, and yet not be allowed to. C) are generally unable to do the monitoring that would result in the firm's avoiding moral hazard problems. D) are generally unable to do the monitoring that would result in the firm's avoiding adverse selection. E) are generally unable to monitor workers, who do not care about the profits due the managers. Title: Re: The principal-agent problem in corporations exists because the managers of a firm Post by: Bart_arg on Oct 25, 2017 Content hidden
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