In a public stock company, senior executives, such as the CEO, face agency problems when
A. they delegate authority of strategic business units to general managers.
B. they decide to get involved in the day-to-day operations of a company.
C. the board of directors possesses more information about the company than they do.
D. the firm designs work tasks, incentives, and employments that minimize opportunism.
Answer: they delegate authority of strategic business units to general managers.