According to agency theory, monitoring would be cheaper and more effective if
Blank
______.

Question

According to agency theory, monitoring would be cheaper and more effective if 
Blank
______.

BlackTom AI · Accepted Answer

Question restatement: According to agency theory, monitoring would be cheaper and more effective if 
Blank
______.

Option 1: 'performed without employees' knowledge' — This suggests covert monitoring, which undermines transparency and trust, and there is no basis in agency theory for cheaper, more effective monitoring simply because employees are unaware; in fact, lack of transparency can create moral hazard and resentment, making monitoring less effective.

Option 2: 'conducted by executives' — Agency theory distinguishes between monitoring costs and who performs them. While executives can monitor, having top-level executives perform routine monitoring typically increases costs and distance from daily operations, reducing cheap, ongoing oversight; this option is not aligned with the idea that lower-cost monitoring arises from closer, cheaper oversight by the workforce itself.

Option 3: 'conducted by employees' — This aligns with the core insight of agency theory that internal, worker-level monitoring (often via self-regulation, peer monitoring, and intrafirm governance mechanisms) tends to be cheaper and more effective than external or top-down monitoring because of lower marginal costs and better alignment with daily tasks. The premise is that employees, being part of the firm, can observe and influence behavior at lower cost.

Option 4: 'performed by managers from other departments' — Involving managers from other departments introduces cross-unit coordination challenges and higher costs, reducing cost-effectiveness and potentially creating power and information asymmetries; this is not supported as the cheaper monitoring mechanism proposed by agency theory.

Overall, the reasoning points toward internal, employee-led monitoring as the mechanism that minimizes costs and enhances effectiveness within the agency framework.

According to agency theory, monitoring would be cheaper and more effective if Blank ______.

查看解析

登录即可查看完整答案

类似问题

Principal-Agent Dilemma is the basis for corporate governance, and results from the separation of control between:

In agency theory, a business's principal is typically a(n) Blank ______.

Which of the following focuses on how employee compensation can be used to align the divergent interests and goals of an organizations' various stakeholders?

Select all the correct alternatives regarding the Principal-Agent problem in corporations:

The relationship between stockholders and management can best be described as a(n) Blank ______ relationship.

Which of the following is not part of the agency relationship?

The action that is likely to be the least effective in aligning shareholder and managers interests is:

The key aspect of the agency relationship for the corporate form of business is that:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单