Economics (AS & A Level) · Feb / March 2022 · Paper 32 · Question 12
9708Growth and survival of firms
What is generally associated with the principal agent problem?
- ADirectors prefer company growth to greater shareholder dividends.
- BManagers ignore workers' concerns about safety in the workplace.
- CShareholders determine the price of products.
- DWorkers go on strike against managers' reorganisation plans.
As printed in the paper
Show the answer
Correct answer: A. Directors prefer company growth to greater shareholder dividends.
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.