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In Business / College | 2025-07-06

Which of the following motivations for business growth involves principal-agent problems?

A. increasing profits
B. increasing market power
C. reducing risk
D. motivating managers

Asked by hosseinkamar

Answer (1)

The motivation for business growth that involves principal-agent problems is primarily related to motivating managers. This issue stems from conflicts of interest between business owners and their hired managers. Ensuring that managers' interests align with those of owners is crucial in driving successful business expansion. ;

Answered by GinnyAnswer | 2025-07-06

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