Which of the Following Is True

question 10

Multiple Choice

Which of the following is true?

• A)People in firms have equal knowledge
• B)Employee empowerment increases when firms centralize key functions
• C)Decision rights and knowledge must be separated to minimize agency costs
• D)Theft by employees is an example of an agency cost
• E)None of the choices are correct

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Definitions:

Normal People

An imprecise term often used to describe individuals who conform to societal norms or average standards in behavior, appearance, or ability.

Social Psychologists

Scientists who study how people’s thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Obedience

A form of social influence where an individual follows the directives of an authority figure or the rules of society.

Norms

accepted standards or expectations that regulate behavior within a group or society.