Traditionally, Wall Street investment banks had been organized as partnerships, but by 2000 they had converted to being publicly traded corporations

As partnerships, the principle-agent problem is ________, but as publicly traded corporations, the principal-agent problem is often ________.
A) reduced; less severe B) increased; more severe
C) increased; less severe D) reduced; more severe

D

Economics

You might also like to view...

Explain how continuing technical progress may cause the price of scarce, exhaustible resources to fall over time

What will be an ideal response?

Economics

Equilibrium GDP is reached when

a. aggregate expenditure exceeds GDP b. aggregate expenditure is less than GDP c. aggregate expenditure equals the level of output d. the level of output is greater than aggregate expenditure e. the level of output is less than aggregate expenditure

Economics