The tendency for managers to operate a firm in a way that maximizes their personal utility rather than the firm's profits is referred to as the:
CA Foundation · Business Economics · MTP · June 2024
The tendency for managers to operate a firm in a way that maximizes their personal utility rather than the firm's profits is referred to as the:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. principal-agent problem.
Topics: Nature & Scope of Business Economics