What Is the Principal-Agent Problem

question 126

Multiple Choice

What is the principal-agent problem?

• A)It is a problem caused by a person (principal)who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way.
• B)It is a problem caused by agents pursuing their own interests rather than the interests of the principals who hired them.
• C)It is a problem of the power system of boss and subordinate where the boss (principal)exerts influence over his subordinates (agents)using punishment or threat.
• D)It is a problem that exists when a person (principal)has more information about the task than the agent he hires to perform the task.

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Definitions:

Gender Stereotypes

Preconceived ideas and beliefs about what behaviors, preferences, and roles are appropriate for men and women, based on their sex.

Gender Polarization

The process or concept of dividing activities, roles, and attributes based on the traditional concept of gender.

Gender-Role Stereotype

A set of societal expectations and norms regarding behaviors, interests, and roles typically associated with one's sex.

Gender Nonconforming

Refers to someone whose gender presentation, either by nature or by choice; does not align with gender-based expectations.