By tying a manager's compensation to the performance of the firm relative to that of its competitors,

My answer is also option (C)

principal agent problem is the correct answer................

Agreed with experts ........................................

answer C ______________________________________

The answer is : Option ( C )

1. By tying a manager's compensation to the performance of the firm relative to that of its competitors, corporate stockholders and directors create incentives that tend to resolve the The correct answer was: c. principal-agent problem.. 

I choose c ...................................................................

c. principal-agent problem..........................................................................