Explain how an agents desire to maintain the ongoing value of a good reputation can facilitate shareholder monitoring of the agent.

Multiple choices are:

employees with good reputations are able to demand more compensation for their work

employees who are caught misbehaving risk losing that higher compensation for their work

reputation facilitates shareholder monitoring because employees are less likely to misbehave if the cost of getting caught and losing their reputation is high

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