Question

Vasily is a manager at a large snack foods company. Vasily believes his company would benefit from being larger and thinks the shareholders would support such growth. The company is doing relatively well but needs to focus on stabilizing profits and expenditures. Vasily pushes for an acquisition anyway. The reason for this acquisition is ______.

Answer 1

Valid

Step-by-step explanation:

From the question we are informed about the Vasily who is a manager at a large snack foods company. Vasily believes his company would benefit from being larger and thinks the shareholders would support such growth. The company is doing relatively well but needs to focus on stabilizing profits and expenditures. Vasily pushes for an acquisition anyway. In this case The reason for this acquisition is a principal-agent problem.

The principal–agent problem, do take place, when decision or action/ impact is been made by a person/ entity on behalf of another person/ entity