According to the Agency Theory

question 71

Multiple Choice

According to the agency theory,

• A) conflicts that arise in corporations should be addressed in the legal realm.
• B) corporations are more than a set of contracts between parties.
• C) companies should focus on generating profits for stockholders.
• D) principals and agents have interchangeable roles.

Identify the types of leadership styles and their impact on group dynamics and outcomes.

Comprehend the structural elements and functions of bureaucracies and formal organizations.

Recognize the informal social relations within organizations and their effects on gender discrimination.

Understand the factors contributing to bureaucratic inefficiency and the criticisms associated with bureaucracy.

---

Definitions:

Social Identity Theory

A psychological theory proposing that a person's sense of who they are is based on their group membership(s).

Self-Esteem

An individual’s overall subjective emotional evaluation of their own worth or personal value.

Football Team

A group of players forming one side in competitive football games.

Prejudice

An unjustified negative attitude toward an individual based on the individual’s membership in a group.