A Theoretical Perspective on Incentives and Monitoring Arising from the Delegation

question 17

Multiple Choice

A theoretical perspective on incentives and monitoring arising from the delegation of decision making authority from principal to agent is known as:

• A)principal theory
• B)delegation theory
• C)agency theory
• D)decision theory

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Definitions:

Connotative Meaning

The emotions and connections triggered by a particular term.

Connotation

Connotation refers to the emotional or cultural associations attached to a word beyond its literal meaning, influencing how it is understood.

Correctness

The quality of being accurate, proper, or in accordance with accepted standards or rules.

Effectiveness

The degree to which something achieves its intended outcome or goal, often used to evaluate processes, strategies, or products.