Which of the Following Is an Example of an Agency

question 29

Multiple Choice

Which of the following is an example of an agency problem?

• A) managers not working as diligently if they are not the sole owner of the business
• B) the board of directors firing an incompetent manager
• C) the manager owning a great deal of stock in the company
• D) a corporate raider attempting to purchase the company

---

Definitions:

Social Networking

The use of internet-based platforms and websites to build and maintain connections with friends, family, and professional contacts.

Chain Of Command

The hierarchical structure in an organization that outlines authority and responsibility, directing how orders are passed down from top-level management to lower-level employees.

Managing Change

The process of planning, implementing, and monitoring changes in organizations to improve efficiency or effectiveness.

Effective Organizations

Organizations that achieve their goals efficiently and effectively by optimizing processes and ensuring employee satisfaction and engagement.