In Which of the Situations Described Below Is the Principal-Agent

question 9

Multiple Choice

In which of the situations described below is the principal-agent problem least likely to occur?

• A)a patient using hospital services
• B)a doctor visiting a patient at home
• C)a bartender serving an individual at a bar
• D)a mechanic repairing a television set
• E)a stockbroker offering financial advice to a client

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Definitions:

Setting Objectives

The process of identifying specific goals and targets that an individual or organization aims to achieve within a specified timeframe.

Planning

The process of setting objectives, outlining tasks, and allocating resources to achieve goals.

Effective Leadership

Effective leadership embodies the ability to guide, inspire, and influence individuals or groups towards achieving collective goals and fostering an environment that supports growth and success.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.