In Corporations, Agency Theory Is Used to Explain the Relationship

question 53

True/False

In corporations, agency theory is used to explain the relationship between stockholders and corporate managers, and between upper-level managers and the lower-level managers they supervise.

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Definitions:

Path-Goal Theory

A leadership theory that suggests leaders should adjust their leadership style based on the needs of their followers to help them achieve their goals.

Leadership Style

The manner and approach of providing direction, implementing plans, and motivating people within organizational settings.

Conscientious Labourers

Workers who are diligent, careful, and meticulous in their tasks, showing a high level of responsibility.

Fiedler's Contingency Theory

is a leadership theory proposing that a leader’s effectiveness is contingent upon how well the leader's leadership style matches the current context or environment.