The Conflict Between Principals and Agents Arises Because

question 43

Multiple Choice

The conflict between principals and agents arises because:

• A)agents often do not know the extent of their authority.
• B)agents act without specific authority form their principals.
• C)agents prefer actions that will increase their own welfare instead of the welfare of their principals.
• D)principals are not willing to give agents the authority that the need to protect the welfare of their principals.

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Definitions:

Goal

An aim or desired outcome that a person or a group of people envision, plan, and commit to achieve.

Frustration

The feeling of being upset or annoyed as a result of being unable to change or achieve something.

Fight-Or-Flight

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival.

Hans Seyle

Incorrect key term, possibly a misspelling of Hans Selye, who is a pioneering Hungarian-Canadian endocrinologist known for his research on the stress response.