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Which of the following is not a characteristic of principal-agent conflicts that often exist in a firm? Managers do not
Posted: Sun May 08, 2022 9:44 am
by answerhappygod
- Which Of The Following Is Not A Characteristic Of Principal Agent Conflicts That Often Exist In A Firm Managers Do Not 1 (27.98 KiB) Viewed 36 times
Which of the following is not a characteristic of principal-agent conflicts that often exist in a firm? Managers do not always operate in the best interest of owners because managers care about the noncash benefits of their jobs. Firms can usually find solutions that reduce agency costs without increasing monitoring or incentive costs. Managers generally have a shorter time horizon than owners; thus, managers do not fully take into account the future long-run profitability of the firm.