Which One of the Following Statements Is TRUE

question 18

Multiple Choice

Which one of the following statements is TRUE?

• A) In an agency relationship, the principal delegates decision-making authority to the agent.
• B) In an agency relationship, the agent delegates authority to the principal.
• C) An example of an agency relationship is when the CEO nominates a slate of candidates to be on the board of directors.
• D) An example of an agency relationship is when a supervisor hires a forklift operator.
• E) The supervisor-employee relation between a production line supervisor and a production line operator is an example of an agency relationship.

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Definitions:

Strategic Farsightedness

The ability of an organization to look beyond immediate challenges and plan for long-term opportunities and risks.

Flexible Structure

An organizational framework that can quickly adapt to changes in the environment, allowing for innovation, scalability, and responsiveness.

Management Team

A group of individuals who work together to manage an organization, make strategic decisions, and ensure the company achieves its goals.

Management Synergy

When combined management efforts result in a performance greater than the sum of their individual effects, leading to increased efficiency and productivity.