Explain what potential conflict exists between shareholders in a corporation and the corporation's managers
What will be an ideal response?
The "principal-agent problem" exists anytime an agent pursues his or her own interests instead of the interests of the principal who hired the agent. In the context of corporations, this can occur if hired managers might not have the same set of goals that corporate owners have.
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The question "What are you going to do with that major?" implicitly questions
A) how much you learn in that major. B) whether the major should be offered on campus. C) how much the market values the human capital developed in the major. D) western bias.
An accounting identity is
A) when the balance of payments is running a surplus or deficits. B) when the balance of trade is in surplus or deficit. C) an expression of values that are equivalent by definition. D) special drawing rights.