To reduce the principal-agent problem,
A) managers can take on more risk than they disclose to investors.
B) managers can inflate profits on financial statements.
C) boards-of-directors can tie the salaries of top management to the profitability of the firm.
D) managers can hide liabilities by not disclosing them on financial statements.
C
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When the evolution of new technologies is unknown, or it is unclear which country has the "best" rules for standards, the adoption of ________ is the superior option
A) a harmonization of standards B) separate standards C) mutual recognition standards D) larger country standards E) All of the above.
For a competitive firm experiencing diminishing marginal productivity, the value of the marginal product (i) increases when the price of output decreases. (ii) changes when marginal product changes. (iii) diminishes as the number of workers rises
a. (i) and (ii) b. (i) and (iii) c. (ii) and (iii) d. All of the above are correct.