9 3. Individual Problems 21-3Which of the following is a characteristic of principal-agent conflicts that often exist in a firm?O Firms can usually find solutions that reduce agency costs without increasing monitoring or incentive costs.Managers do not always operate in the best interest of owners because owners are generally more risk averse than managers.Managers do not always operate in the best interest of owners because managers care about the noncash benefits of their jobs.

3. Individual Problems 21-3 Which of the following is a characteristic of principal-agent conflicts that often exist in a firm? O Firms can usually find solutions that reduce agency costs without increasing monitoring or incentive costs. O Managers do not always operate in the best interest of owners because owners are generally more risk averse than managers. O Managers do not always operate in the best interest of owners because managers care about the noncash benefits of their jobs.

3. Individual Problems 21-3 Which of the following is a characteristic of principal-agent conflicts that often exist in a firm? O Firms can usually find solutions that reduce agency costs without increasing monitoring or incentive costs. O Managers do not always operate in the best interest of owners because owners are generally more risk averse than managers. O Managers do not always operate in the best interest of owners because managers care about the noncash benefits of their jobs.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter1: Introduction And Goals Of The Firm

Section: Chapter Questions

Problem 2E

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