In Which of the Following Relationships Is an Agency Problem

question 15

Multiple Choice

In which of the following relationships is an agency problem LEAST likely to arise?

• A)the relationship between a driver and the passengers in a car regarding the safe driving of that car
• B)the relationship between high-level military officers and the soldiers who serve under them regarding the willingness of the soldiery to take risks
• C)the relationship between a restaurateur and the suppliers of produce to that restaurant regarding the freshness of the produce supplied
• D)the relationship between a hire-car company and the persons who hire that company's cars regarding the treatment of those cars

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Definitions:

True Feelings

Genuine emotions or sentiments that a person experiences and may or may not express openly.

External Situations

Circumstances or events that occur outside of an individual's control, which can impact their behavior and emotions.

Self-Schema

Cognitive representations of oneself that organize and guide the processing of self-relevant information.

Cognitive Representation

The mental process of constructing an internal model of the external world, objects, or events based on perception and information processing.