A Firm Owner Wants a Manager to Make Difficult Personnel

question 5

Multiple Choice

A firm owner wants a manager to make difficult personnel decisions when necessary (which requires firing a worker every now and then) in order to maximize the firm's profits. The manager, however, prefers to not fire anyone. The worker also prefers not to be fired. In this example, who is the principal and who is the agent?

• A)The firm owner is the principal. The manager is the agent.
• B)The firm owner is the principal. The should-be-fired worker is the agent.
• C)The manager is the principal. The firm owner is the agent.
• D)The should-be-fired worker is the principal. The manager is the agent.
• E)The should-not-be-fired worker is the principal. The firm owner is the agent.

---

Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Emotional Traumas

Deeply distressing or disturbing experiences that can have long-lasting psychological impact.

Early Childhood

A critical period in human development that spans from birth to 8 years, characterized by rapid physical, cognitive, and emotional growth.

Functionalists

A perspective in psychology that focuses on how mental and behavioral processes function - how they enable the organism to adapt, survive, and flourish.