Which One of the Following Statements Is TRUE

question 51

Multiple Choice

Which one of the following statements is TRUE?

• A) An example of an agency relationship is when the board of directors hires a CEO to run a company.
• B) An example of an agency relationship is when the CEO nominates a slate of candidates to be on the board of directors.
• C) An example of an agency relationship is when a supervisor hires a forklift operator.
• D) The supervisor-employee relation between a production line supervisor and a production line operator is an example of an agency relationship.
• E) An agency cost is the wage required to pay someone who is hired to perform a service.

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Definitions:

Fertilizer

A substance added to soil to enhance its fertility by supplying essential nutrients to plants.

Bushels

A unit of volume commonly used in agriculture, particularly in the United States, for measuring quantities of grain, fruits, and other dry commodities.

Price

The amount of currency needed to buy a good or service.

Profit

The financial gain realized when the amount of revenue earned from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.