An agency problem can occur when
A) the desires and objectives of the owners and agents conflict.
B) it is difficult or expensive for the owners to verify what the agent is actually doing.
C) the owners and agents have different attitudes toward risk.
D) executives do not select risky strategies because they fear losing their jobs if the strategy fails.
E) all of the above
E
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In any relationship, ________ is important because it provides a degree of confidence in the words and actions
of another. A) trust B) personality C) honesty D) a contract
Ray Kroc and other entrepreneurs decided to focus less on profits and more on delivering consistent ________ to customers. They found that if they could consistently deliver ________, they could build a franchisable business
(Use the same word twice.) A) Quality B) Service C) Consistency D) Royalties E) Fees