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Who is typically responsible for the day-to-day running of a corporation? A. the sole proprietor B. the management team C. the limited partner D. the

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Who is typically responsible for the day-to-day running of a corporation? A. the sole proprietor B. the management team C. the limited partner D. the shareholders E. the board of directors A factory owner wants his workers to produce as many widgets as they can, so he pays his workers based on how many widgets they produce. However, in order to make sure that the workers do not rush and produce a latge number of poorly made widgets, he checks the widgets at random at vatious stages of their manufacture. If a delect is found in a widget, the pay of the entire section of the factory responsible for that detect is docked. How is this factory owner seoking to solve the principal-agent problem in this case? A. by maximizing the information that the principal obtains about the behaviour of the agents B. by using quality control techniques C. by making the agents into principals themselves D. by ensuring that all workers co-operate to maximize the gains of their section E. by supplying incentives so the agents act in the way principal desires

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