The Agency Problem Can Be Mitigated by ________

question 9

Multiple Choice

The agency problem can be mitigated by ________.

• A)greater transparency
• B)a higher degree of independence
• C)design of contracts
• D)internal auditing

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Definitions:

Inferiority Complex

A psychological condition where an individual feels a deep sense of inadequacy and lack of self-esteem, often stemming from real or perceived weaknesses.

Alfred Adler

An Austrian psychiatrist and psychotherapist known for founding the school of individual psychology which emphasizes the importance of feelings of inferiority and the creative self.

Compensation

A psychological defense mechanism where an individual overachieves in one area to compensate for failures in another.

Genital Stage

The final stage of Freud's psychosexual development, beginning in puberty, where sexual energies are focused on the genitals and mature sexual relationships are formed.