Which of the Following Illustrates an Agency Problem

question 67

Multiple Choice

Which of the following illustrates an agency problem?

• A)The advertising agency that a company uses produces top quality materials and charges a high price for its work.
• B)A not-for-profit environmental agency stages a protest.This results in negative attention to a company's manufacturing methods.
• C)A company's board, in wanting to protect board member compensation, agrees with everything company management suggests.
• D)A hiring agency screens out potential applicants to a company's job posting.

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Definitions:

Delusions

False beliefs held strongly by a person, despite evidence to the contrary, often due to a psychological disorder.

Pharmaceutical Study

A research project focused on the development, testing, and evaluation of drugs and medications to determine their safety and efficacy.

Avolition

A reduction in the motivation to initiate and perform self-directed purposeful activities.

Flat Affect

A severe reduction in emotional expressiveness, with individuals often displaying minimal facial expressions or vocal tone variability.