Copious Corp

question 127

Multiple Choice

Copious Corp.is owned by 2 million stockholders,who elect a board of directors.This board selects a management team responsible for hiring workers to serve customers by selling and repairing computer monitors.Which of the following statements is true?

• A)In the principal-agent relationship between workers and customers, the customers are the agents.
• B)In the principal-agent relationship between workers and managers, the managers are the agents.
• C)In the principal-agent relationship between the stockholders and the board of directors, the stockholders are the agents.
• D)In the principal-agent relationship between the stockholders and the customers, the stockholders are the agents.
• E)In the principal-agent relationship between management and the board of directors, the managers are the agents.

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Definitions:

Explanandum

The phenomenon or event that is explained by the explanans in a scientific explanation.

Explanation

A statement or account that makes something clear, often by detailing the causes, context, or mechanisms behind it.

Logical Strength

The degree to which the premises of an argument support its conclusion, determining its cogency or persuasiveness.

Explanation

A statement or account that makes something clear by describing details or reasons.