Which One of the Following Statements Is TRUE

question 7

Multiple Choice

Which one of the following statements is TRUE?

• A) An example of an agency relationship is when a private individual hires a lawyer to prepare her defense in a lawsuit.
• B) An example of an agency relationship is when a supervisor hires a forklift operator.
• C) The supervisor-employee relation between a production line supervisor and a production line operator is an example of an agency relationship.
• D) An agency cost is the wage required to pay someone who is hired to perform a service.
• E) An example of an agency cost is when the board of directors pays a dividend to shareholders.

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Definitions:

Homeostasis

The process by which biological systems maintain a stable internal environment despite changes in external conditions.

Drive

An innate, biologically determined urge to attain a goal or satisfy a need.

Delay Gratification

The ability to resist the temptation for an immediate reward and wait for a later, often greater reward.

Delay Gratification

The capacity to withstand the urge for an instant gratification in favor of a future reward.