​A Potential Problem Arises in Principal-Agent Relationships

question 49

Multiple Choice

​A potential problem arises in principal-agent relationships

• A)​because the agents' actions are not always observed by the principals
• B)because the principals' actions are not always observed by the agents
• C)because the agent's and the principals' actions are always observed by each other
• D)​the observability of actions is irrelevant

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Definitions:

Expensive

Characterized by high cost or price; something that requires a significant amount of money to purchase or maintain.

Merton's Strain Theory

A sociological theory that explains deviance in terms of the pressure individuals feel to achieve socially accepted goals by legitimate means.

Deviance

Actions or behaviors that violate societal norms or regulations, which can result in disapproval from the majority of society.

Consensus Crimes

These are offenses that are widely regarded by society as being morally unacceptable or reprehensible, such as murder or theft.