Money & Bank MCQ MB Chapter 8 Because managers (________) have less incentive to maximize profits than the stockholders-owners (________) do, stockholders find it costly to monitor managers; thus, they are reluctant to purchase equities.

Because managers () have less incentive to maximize profits than the stockholders-owners () do, stockholders find it costly to monitor managers; thus, they are reluctant to purchase equities.

MB Chapter 8

Because managers () have less incentive to maximize profits than the stockholders-owners () do, stockholders find it costly to monitor managers; thus, they are reluctant to purchase equities.

A) principals; agents
B) principals; principals
C) agents; agents
D) agents; principals

Answer: D

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Money & Bank MCQ

Because managers (________) have less incentive to maximize profits than the stockholders-owners (________) do, stockholders find it costly to monitor managers; thus, they are reluctant to purchase equities.

Because managers (________) have less incentive to maximize profits than the stockholders-owners (________) do, stockholders find it costly to monitor managers; thus, they are reluctant to purchase equities.

Learn More :

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Because managers () have less incentive to maximize profits than the stockholders-owners () do, stockholders find it costly to monitor managers; thus, they are reluctant to purchase equities.

Because managers () have less incentive to maximize profits than the stockholders-owners () do, stockholders find it costly to monitor managers; thus, they are reluctant to purchase equities.