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

question 28

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

Recognize the implications of the "economic man" theory in decision-making.

Understand the role of standard operating procedures and how they influence decision-making in organizations.

Explain the importance of involving a range of stakeholders in the decision-making process to ensure quality and innovation.

Identify and analyze the common elements found in failed decisions.

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Definitions:

Attitudes

A settled way of thinking or feeling about something, which often reflects an individual's views or opinions.

Demographic Surveys

Research tools used to collect data about the characteristics of a population, such as age, gender, income, etc.

Safety and Security

Refers to measures and protocols implemented to protect individuals, data, and assets from harm or unauthorized access.

Acceptance

Acceptance is the act of agreeing to receive or undertake something offered, or the recognition and approval of a situation or condition as it is.