Question: Explain how an agents desire to maintain the ongoing value of a good reputation can facili- tate shareholder monitoring of the agent. A. employees with
Explain how an agents desire to maintain the ongoing value of a good reputation can facili- tate shareholder monitoring of the agent.
| A. employees with good reputations are able to demand more compensation for their work | ||
| b. employees who are caught misbehaving risk losing that higher compensation for their work | ||
| C. reputation facilitates shareholder monitoring because employees are less likely to misbehave if the cost of getting caught and losing their reputation is high | ||
| D. desire to maintain a good reputation does not facilitate shareholder monitoring | ||
| A and B | ||
| A and C | ||
| A and D | ||
| B and C | ||
| B and D | ||
| C and D | ||
| all but A | ||
| all but B | ||
| all but C | ||
| all but D | ||
| all are true |
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