Corporate Governance Fundamentals Quiz
5 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What problem arises when an agent acts on behalf of a principal?

  • Moral Hazard (correct)
  • Insufficient effort
  • Transparency issue
  • Entrenchment

    • What is an example of entrenchment as part of the agency problem?

  • Insufficient effort
  • Self-dealing
  • Lack of transparency
  • Extravagant investment (correct)

    • How can the principal-agent problem be mitigated?

  • Ethical guidelines
  • Strict regulations
  • Increased compensation
  • Complete contracts (correct)

    • What may be in the interest of the agent to do once a contract is signed?

    <p>Behave badly</p> Signup and view all the answers

    What is the primary cause of the agency problem?

    <p>Different interests between principal and agent</p> Signup and view all the answers

    More Like This

    Corporate Governance Policies
    23 questions

    Corporate Governance Policies

    ReplaceableSalmon avatar
    ReplaceableSalmon
    Corporate Governance and Ethics Quiz
    13 questions

    Corporate Governance and Ethics Quiz

    ProgressiveJustice avatar
    ProgressiveJustice
    Corporate Governance Introduction Quiz
    12 questions

    Corporate Governance Introduction Quiz

    WarmIntegral avatar
    WarmIntegral
    Corporate Governance Quiz
    40 questions

    Corporate Governance Quiz

    RobustHelium avatar
    RobustHelium
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser