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The principal-agent problem may result if?

 a. a firm is owned and operated by the same person. 

 b. managers make decisions that are not in the best interest of owners. 

 c. a firm compensates managers based on the profitability of the firm. 

 d. All of these answers are correct. 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/05/06
Upvote (2) Views (3) Followers (8) Answers (8) Report Question
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Khaled Anwar
by Khaled Anwar , Senior Sales Engineer , "Automotive company''

The answer is : Option ( B )

Ayoub Tartir , PMP, GWCPgM, CISA, CISSP, CAP, CSSLP, FITSP-D, CEH, CHFI, CCNA, CCNA Security, Security+, Network+

My answer is option (B) managers make decisions that are not in the best interest of owners.

Bello Abubakar
by Bello Abubakar , Cinema 4D Render/Sketch UP, AutoCAD, ArchiCAD and Revit Specialist , Federal Housing Authority

B................................................................................................

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Answer will be option ____________________B

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

 b. managers make decisions that are not in the best interest of owners.  is correct,,,,,,,,,,,,

Salvatore Augello
by Salvatore Augello , owner , A.S. Trade & Consult

answer B ___________________________________

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The principal-agent problem may result if The correct answer was: b. managers make decisions that are not in the best interest of owners.. 

Mohammed Fathe Shaheem
by Mohammed Fathe Shaheem , Operation Executive , Arabian Construction Company

b......................................................

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