Which of the Following Is an Example of an Agency

question 14

Multiple Choice

Which of the following is an example of an agency problem?

• A) Managers engage in empire building.
• B) Managers protect their jobs by avoiding risky projects.
• C) Managers overconsume luxuries such as corporate jets.
• D) All of the options are examples of agency problems.

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Definitions:

Implicit Bias

The subconscious association, belief, or attitude towards any social group, often influencing behavior without conscious awareness.

Self-Fulfilling Prophecy

A prophecy that, by means of a reinforcing feedback cycle between behavior and belief, turns itself into reality, whether it does so directly or indirectly.

Prejudice

A preconceived opinion or judgment about someone or something that is not based on reason or actual experience.

Discrimination

The unfair treatment of various groups of individuals or objects based on race, age, or gender.