Which of the following is a problem encountered in a transaction involving a principal/agent relationship?
a. Absence of monitoring and supervision
b. Excessive dependence on forecasts and expectations
c. High investment in industry specific assets
d. Government interference and market volatility
Question 2
What incentive is created by a first-come first-serve allocation scheme?
A) To engage in rent-seeking.
B) To have the most income.
C) To be first.
D) To be elected.
