Principal-Agent Theory Assumes All of the Following EXCEPT That ______

question 59

Multiple Choice

Principal-agent theory assumes all of the following EXCEPT that ______.

• A) work provides rewards
• B) individuals are self-interested
• C) officials and workers operate through contracts
• D) bureaucrats are irrational

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Definitions:

Autonomy

The capacity to make an informed, uncoerced decision independently.

Hierarchy of Needs

A theory proposed by Abraham Maslow suggesting that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, which must be fulfilled in sequence.

Committed Relationship

A long-term, dedicated partnership between individuals, which can be romantic or platonic, characterized by mutual respect, love, and shared goals.

Homeostasis

The process through which living organisms maintain equilibrium while adapting to circumstances that are best for their continuation.