Which One of the Following Can Best Be Characterized as an Agency

question 10

Multiple Choice

Which one of the following can best be characterized as an agency problem?

• A) differing opinions among directors as to the merits of paying a higher dividend. .
• B) differing incentives between managers and owners.
• C) persistently late delivery times by a major supplier.
• D) Geological problems in the company's new gold mine.

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Definitions:

Defense Mechanism

Psychological strategies brought into play by individuals, unconsciously, to protect themselves from anxiety and to cope with reality.

Unacceptable Impulse

A desire or thought that is not permitted by personal values or social standards, often repressed or denied.

Superego

In Freudian psychoanalysis, the part of the personality that acts as the ethical component, providing moral standards by which the ego operates.

Freud

The founder of psychoanalysis, Austrian neurologist Sigmund Freud, devised a method to cure psychopathologies by facilitating conversations between a patient and a psychoanalyst.