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

Question

BlackTom AI · Accepted Answer

To begin, we identify the core concept: the principal–agent dilemma in corporate governance arises when there is a separation of ownership and control, leading to potential conflicts between the owners (principals) and those who manage the firm (agents).
Option 1: 'Government and private sector firms.' This does not describe an ownership/control split within a single firm; it references different types of organizations rather than the ownership/control relationship within a corporation. Hence, it is incorrect.
Option 2: 'Shareholders and stakeholders of a firm.' While stakeholders include a broad set of parties affected by the firm (employees, customers, creditors, community, etc.), the principal–agent dilemma specifically concerns the relationship between owners (shareholders) and those who run the firm (management). This option mixes ownership with a broader group and does not pinpoint the control separation.
Option 3: 'Management and the shareholders of a firm.' This option correctly identifies the classic split between those who own the firm (shareholders) and those who run it (management), which is the essence of the principal–agent problem.
Option 4: 'Management and the stakeholders of a firm.' Although management interacts with stakeholders, the dilemma at the heart of corporate governance is not primarily about management versus all stakeholders; it centers on management acting in the owners’ interests versus owners’ interests themselves. This makes it inaccurate as the basis of the principal–agent problem.
In summary, the only choice that accurately captures the separation of control between the owners (shareholders) and those who govern (management) is Option 3: 'Management and the shareholders of a firm.'

BU.231.720.51.FA25 Quiz 1- Requires Respondus LockDown Browser

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

查看解析

登录即可查看完整答案

类似问题

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

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