Agency Theory Makes the Assumption That Individuals in Agency Relationships

question 13

Multiple Choice

Agency theory makes the assumption that individuals in agency relationships are _____ and will always take actions to enhance their self-interests.

• A) utility-maximizers
• B) negotiators
• C) satisficers
• D) adopters

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Definitions:

Charisma

A personal quality that gives an individual influence or authority over large numbers of people, often associated with captivating and compelling leaders.

Trait Approach

An approach in psychology and leadership studies that suggests certain individual characteristics and qualities can make effective leaders.

Trait

A characteristic or quality that defines an individual and influences their behavior or attitudes.

Extraversion

A personality trait characterized by a tendency to be outgoing, sociable, and energetic, typically enjoying engagement in social settings and interactions.