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Economics (AS & A Level) · May / June 2023 · Paper 31 · Question 11

9708Growth and survival of firms

What would definitely result from the divorce of ownership and control?

  1. Adecreased moral hazard
  2. Bthe principal agent problem
  3. Cgreater productive efficiency
  4. Dincreased profit maximisation

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Correct answer: B. the principal agent problem

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