Which One of the Following Statements Is TRUE

question 19

Multiple Choice

Which one of the following statements is TRUE?

• A) an agency relationship is when a principal hires an agent to perform a service and gives them decision-making authority.
• B) an agency relationship is when a principal works for an agent.
• C) in an agency relationship, the agent delegates authority to the principal.
• D) an example of an agency relationship is when the ceo nominates a slate of candidates to be on the board of directors.
• E) an example of an agency relationship is when a supervisor hires a forklift operator.

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Definitions:

Obedience

Behaving in accordance with the rules and commands of those in authority.

Halo Effect

A cognitive bias where the perception of a particular trait is influenced by the perception of former traits in a sequence of interpretations.

Reciprocal Liking

The phenomena where people tend to like others who like them in return.

Primacy Effect

The cognitive phenomenon where individuals are more likely to remember and give more weight to information that is presented first in a series.