Which of the Following Would Be Best Considered to Be

question 85

Multiple Choice

Which of the following would be best considered to be an agency conflict problem in the behavior of the following financial managers?

• A) Bill chooses to pursue a risky investment for the company's funds because his compensation will substantially rise if it succeeds.
• B) Sue instructs her staff to skip safety inspections in one of the company's factories, knowing that it will likely fail the inspection and incur significant costs to fix.
• C) James ignores an opportunity for his company to invest in a new drug to fight Alzheimer's disease, judging the drug's chances of succeeding as low.
• D) Michael chooses to enhance his firm's reputation at some cost to its shareholders by sponsoring a team of athletes for the Olympics.

---

Definitions:

Nazi Experiments

Human experiments conducted by Nazi Germany during World War II that involved unethical procedures on prisoners without their consent.

Medical Trials

Research studies performed on volunteers to assess the safety and efficacy of new drugs, devices, or procedures before they are made available to the public.

False Positive

An error in some test results in which a condition or trait is incorrectly indicated as present, leading to potential misinterpretation of the state.

Peter Singer

An Australian moral philosopher known for his work on ethics, particularly animal rights and bioethics, advocating for utilitarian principles.