Agency Theory Recognizes Two Kinds of Information Consumers

question 8

Multiple Choice

Agency theory recognizes two kinds of information consumers. Which of the following describes the relationship between them?

• A) Principals hire agents to make decisions for them.
• B) Agents hire principals to hold them accountable for decisions.
• C) Principals and agents work together in the best interest of the organization.
• D) Principals are government employees, while agents work in the private sector.

---

Definitions:

Simpler

Characterized by ease in understanding or doing; not complicated or complex.

Type Sizes

The measurement of the height of characters in a font, typically expressed in points, affecting readability and visual impact.

Printed Business Document

A physical document used in business transactions or communications, such as reports, invoices, or contracts.

Points

Specific details or arguments presented to support a particular position or idea.