Under agency theory, a manager should seek to align Blank______ between principals and agents to minimize opportunism.Multiple choice question.work scheduleseducational backgroundsdisciplinary actionsincentives
Question
Under agency theory, a manager should seek to align Blank______ between principals and agents to minimize opportunism.Multiple choice question.work scheduleseducational backgroundsdisciplinary actionsincentives
Solution
The correct answer is "incentives". Agency theory suggests that aligning the incentives of both principals (owners) and agents (managers) can help to minimize opportunism. This is because when both parties stand to gain from the success of the company, they are more likely to work towards the same goals.
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