Which One of the Following Is Most Likely to Create

question 43

Multiple Choice

Which one of the following is most likely to create a situation where an agency conflict could arise?

• A)increasing the size of a firm's operations
• B)downsizing a firm
• C)separating management from ownership
• D)decreasing employee turnover
• E)reducing both management and non-management salaries

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Definitions:

Target

A specific goal or objective that is aimed to be achieved.

Coercive Power

Power that is based on an agent’s ability to cause an unpleasant experience for a target.

Agent

An individual or entity authorized to act on behalf of another person or organization to create legal relations with third parties.

Unpleasant Experience

An event or situation that causes discomfort, distress, or dissatisfaction, impacting an individual's emotional state.