In Public Stock Companies, Which of the Following Expectations of Principals

question 46

Multiple Choice

In public stock companies, which of the following expectations of principals is most likely to lead to principal-agent problems?

• A) the expectation that the agent will follow the country's laws and regulations
• B) the expectation that the agent will go above and beyond the call of duty
• C) the expectation that the agent will reconnect economic and social needs
• D) the expectation that the agent will act in the principal's best interest

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Definitions:

Accumulates

means to gather or collect items over time, often resulting in an increasing quantity.

Marbles

Small, round objects, typically made of glass, clay, steel, plastic, or agate, used as playing pieces in various children's games or as a collectible item.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, where an association is made between a behavior and a consequence for that behavior.

Token Economy

A behavioral modification technique based on the systematic reinforcement of target behavior. The reinforcements are tokens that can be exchanged for other reinforcements.