Question

Ron works for Betty, the manager at Alfredo's Pizza Cafe (not Pizza By Alfredo, thank goodness). Betty has many work rules, and Ron believes that if there were fewer rules and more flexibility, he could do a better job. Betty probably has the rules because

Group of answer choices

A. Ron, like her other employees, is a residual claimant.

B. due to the principal-agent problem, some employees are likely to shirk when the owner is absent.

C. she is maximizing sales rather than profits.

D. with regard to their jobs, employees seldom know what is best.

Answer 1

Ans) the correct option is b) due to the principal-agent problem, some employees are likely to shirk when the owner is absent.