Ensuring that managers operate firms in the best interest of the owners rather than themselves is called ____________.
Group of answer choices

managerialism

comparative advantage

takeover theory

the principal-agent problem

Question

21-11-2022
Biology

Answered

Ensuring that managers operate firms in the best interest of the owners rather than themselves is called ____________.
Group of answer choices

managerialism

comparative advantage

takeover theory

the principal-agent problem

Answer :

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marvineetesh3 marvineetesh3 · Answer 1 · 2022-11-24T04:52:39-05:00

Ensuring that managers operate firms in the best interest of the owners rather than themselves is called the principal-agent problem. Option D is correct.

What is the the principal-agent problem?

It is a problem generated by agents who are more concerned with their own interests than with the interests of the principals who employed them.

The principal agent problem occurs when one party (agent) decides to act in favor of another party (principle) in exchange for financial incentives. Such an agreement may incur significant expenses for the agent, resulting in moral hazard and conflict of interest issues.

The principal-agent problem refers to ensuring that managers conduct businesses in the best interests of the owners rather than themselves.

Therefore, option D is correct.

Learn more about the principal-agent, refer to:

https://brainly.com/question/15016181

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Ensuring that managers operate firms in the best interest of the owners rather than themselves is called ____________. Group of answer choices managerialism comparative advantage takeover theory the principal-agent problem

Answer :

What is the the principal-agent problem?

Other Questions

Ensuring that managers operate firms in the best interest of the owners rather than themselves is called ____________.
Group of answer choices

managerialism

comparative advantage

takeover theory

the principal-agent problem