To avoid the agency problem, managers should take actions:

A) Which adds value to the firm.
B) Only after the president has approved them.
C) Only if they increase the market share of the firm.
D) Which add to the size of the firm's workforce.
E) Only if management jobs will not be jeopardized.

Agency Problem

The agency problem arises when there is a conflict of interest between the goals of principals (such as shareholders) and agents (such as company executives) managing the company.

Market Share

The portion of a market controlled by a particular company or product.

Management Jobs

Positions within an organization responsible for strategizing, decision-making, and overseeing teams or departments to achieve company objectives.