Jensen and Meckling showed that can assure themselves that the will make optimal decisions only if appropriate incentives are given and only if the __ are monitored.

The correct answer is A. Principals; agents; agents. See the full explanation below for the reasoning.

Fiduciary and Trust Activities

Question

Jensen and Meckling showed that __________ can assure themselves that the __________ will make optimal decisions only if appropriate incentives are given and only if the __________ are monitored.

Options

APrincipals; agents; agents
BAgents; principals; principals
CPrincipals; agents; principals
DAgents; principals; agents

How the community answered

(36 responses)

A
69% (25)
B
17% (6)
C
6% (2)
D
8% (3)

Topics

#principal-agent theory#agency theory#incentives#fiduciary oversight

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