In Which of the Following Relationships Is an Agency Problem

question 18

Multiple Choice

In which of the following relationships is an agency problem LEAST likely to arise?

• A) the relationship between high-level military officers and the soldiers who serve under them regarding the willingness of the soldiery to take risks
• B) the relationship between a hire-car company and the persons who hire that company's cars regarding the treatment of those cars
• C) the relationship between a restaurateur and the suppliers of produce to that restaurant regarding the freshness of the produce supplied
• D) the relationship between a driver and the passengers in a car regarding the safe driving of that car

---

Definitions:

Social Media

Platforms and technologies that enable users to create, share content, or participate in social networking, significantly impacting communication and information dissemination.

Online Activities

Actions or tasks performed on the internet, including browsing, gaming, social networking, and transactions.

Platform Capitalism

describes an economic system where platforms (e.g., social media, ride-sharing apps) play a central role in mediating economic transactions and generating value, often at the expense of traditional labor relations.

Algorithmic Management

The use of computer algorithms and software to manage, direct, and evaluate work and employees, often associated with gig economy platforms and data-driven decision-making.