Scenario 22-1 Esteban and Michaela Own an Apartment Building. They Hire Nico

question 444

Multiple Choice

Scenario 22-1
Esteban and Michaela own an apartment building. They hire Nico to manage the building and deal with tenants' complaints. They also hire Ted to make any necessary repairs to the apartments or the common area and they hire Rex to be the door guard at night.
-Refer to Scenario 22-1. Which of the following statements is correct?

• A)If Rex falls asleep while he is supposed to be guarding the door, he has created an adverse selection problem.
• B)Esteban and Michaela are the principals and Nico, Ted, and Rex are the agents.
• C)Nico is the principal and Ted and Rex are the agents.
• D)All of the above are correct.

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Definitions:

Voice of Management

The ways in which an organization's management communicates with employees, often concerning decision-making, policies, and overall direction.

Human Resource Departments

Organizational units responsible for recruiting, training, and managing employees.

Sustainable Strategies

Approaches in organizational and business planning that focus on long-term success and sustainability by considering environmental, social, and economic impacts.

Employee Development

Activities and programs offered by an organization to improve the skills and competencies of its employees.