The Principal-Agent Problem Is a Problem

question 89

Multiple Choice

The principal-agent problem is a problem

• A)caused by a person (principal)who hires an agent to act on his behalf but is unwilling to delegate authority to the agent to carry out the task in the best possible way.
• B)caused by agents pursuing their own interests rather than the interests of the principals who hired them.
• C)of the power system of boss and subordinate where the boss (principal)exerts influence over his subordinates (agents)using punishment or threat.
• D)that exists when a person (principal)has more information about the task than the agent he hires to perform the task.

Understand the historical and conceptual evolution of comparative research frameworks.

Comprehend the definitions and implications of terms like race, ethnicity, and socioeconomic status in psychological research.

Recognize the impact of societal constructs and norms on the development of psychological theories.

Identify the role and limitations of descriptive studies in psychological research.

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Definitions:

Misconduct

Improper or unlawful behavior by a person in a position of authority or trust.

Risks

The potential for loss, damage, or any other undesirable outcome resulting from internal or external vulnerabilities.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Syndicate

A group of individuals or organizations combined to promote some common interest, often in business or finance.