The Principal-Agent Problem Is Quite Common in Large Public Corporations

question 118

Multiple Choice

The principal-agent problem is quite common in large public corporations due to:

• A)The fact that large corporations generate large sales volumes
• B)The fact that large companies employ many people
• C)Too little regulation by government
• D)The fact that the people making the operational decisions are usually not the owners

Identify the factors contributing to job satisfaction and how they influence employee performance and organizational outcomes.

Differentiate between the types of organizational commitment and understand their implications on employee behavior.

Understand the exit-voice-loyalty-neglect model and how employees respond to job dissatisfaction.

Understanding the concept of becoming an ethical and effective helper in a multicultural society as a continuous process.

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Definitions:

Income

Cash inflow, customarily obtained at regular periods, as compensation for work or from investment outcomes.

Constraint

A limitation or restriction on the variables of a problem, often seen in economics as budget constraints affecting consumer choices.

Utility Function

A mathematical model that describes how a person ranks choices based on perceived utility, happiness, or satisfaction.

Consumption

The act of using goods and services by households or individuals, leading to the satisfaction of needs and wants.