Final answer:
The true statement is 'd. In an agency relationship, the principal delegates decision-making authority to the agent.' This reflects the essence of such relationships where the principal grants authority to the agent to make decisions and manage affairs on their behalf.
Step-by-step explanation:
The concept in question relates to agency relationships within a business context. An agency relationship occurs when one party, the agent, agrees to act on behalf of another, the principal. In a typical business hierarchy, management roles and their relations to subordinate employees can sometimes reflect aspects of agency relationships.
According to the choices given, the correct statement is option 'd': In an agency relationship, the principal delegates decision-making authority to the agent. This reflects the core of agency theory, where the principal (such as a shareholder) empowers the agent (such as a manager) to make decisions and take actions on their behalf.
Therefore, the statements involving a supervisor and an employee (options 'a' and 'c') might reflect a hierarchical relationship but not necessarily that of an agent and principal. The relationship between the CEO and board of directors (option 'b') is often influenced by agency relationship dynamics, but the nomination of board candidates does not in itself illustrate the delegation of decision-making authority that defines an agency relationship.
Option 'e' is incorrect because in an agency relationship, it is the agent who is granted authority by the principal, not the other way round.