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Author Question: Which of the following are not approaches to resolving the principal-agent problem? a. ex ante ... (Read 39 times)

imanialler

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  • Posts: 539
on: Jul 1, 2018
Which of the following are not approaches to resolving the principal-agent problem?
 a. ex ante incentive alignment
  b. deferred stock options
  c. ex post governance mechanism
  d. straight salary contracts
  e. monitoring by independent outside directors

Question 2

Which firm is not dealing with adverse selection
 a. a manufacturer requires a 90 day probationary period for new employees
  b. a temporary clerical agency hires without verifying typing skills
  c. a manufacturer requires suppliers to be ISO 900 . certified
  d. Smokers get the worse life insurance rates as non-smokers


whitcassie

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Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

b


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