The Principal-Agent Problem Is a Problem

question 89

Multiple Choice

The principal-agent problem is a problem

• A)caused by a person (principal)who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way.
• B)caused by agents pursuing their own interests rather than the interests of the principals who hired them.
• C)of the power system of boss and subordinate where the boss (principal)exerts influence over his subordinates (agents)using punishment or threat.
• D)that exists when a person (principal)has more information about the task than the agent he hires to perform the task.

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Definitions:

VALS Framework

A psychographic segmentation tool that categorizes consumers into eight distinct types based on their values, attitudes, and lifestyles.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Lifestyles

The distinctive ways of living based on the values, interests, and behaviors of individuals or groups.

Psychographics

The study of personality, values, opinions, attitudes, interests, and lifestyles of consumers to segment markets.