Which of the Following Is the Best Example of an Agency

question 17

Multiple Choice

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

• A) A CEO makes a decision that maximizes his or her own self interest at the expense of shareholders
• B) The CEO of one organization sits on the board of directors of another organization
• C) Both shareholders and managers express an interest in maximizing organizational profits
• D) A CEO decides to take a pay cut because the corporation is struggling

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Definitions:

One Male And One Female

A phrase typically used to denote the presence or requirement of two individuals of opposite sex, often in biological or social contexts.

Infanticide

Infanticide refers to the act of killing an infant or very young child, a practice that has occurred in various forms across different societies and time periods.

Biological Relatedness

A measure of genetic similarity between individuals, often used in the context of family and ancestry.

Stepfather

A man who is married to one's mother after the divorce or separation from one's biological or legal father and may assume a role in raising the child.