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Direction: It consists of two statements, one labelled as ‘Statement (I)’ and the others as ‘Statement (II)’. You are to examine these two statements carefully and select the answer using the codes given below:

Statement (I): Agency-loyalty is acting to fulfill one's contractual duties to an employer.

Statement (II): Agency-loyalty is entirely a matter of actions, whatever its motives.


1. Both Statement (I) and Statement (II) are individually true and Statement (II) is the correct explanation of Statement (I)
2. Both Statement (I) and Statement (II) are individually true but Statement (II) is not the correct explanation of Statement (I)
3. Statement (I) is true but Statement (II) is false
4. Statement (I) is false but Statement (II) is true

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Correct Answer - Option 2 : Both Statement (I) and Statement (II) are individually true but Statement (II) is not the correct explanation of Statement (I)

Loyalty: It is the faithful adherence to an organization and the employer. Loyalty to an employer can be either of the two types:

Agency-loyalty: It is acting to fulfil one’s contractual duties to an employer. This is entirely a matter of actions, such as doing one’s job and not stealing from one’s employer, irrespective of the motive behind it.

Attitude-loyalty: It has a lot to do with attitudes, emotions, and a sense of personal identity as it does with actions. It can be understood that people who work grudgingly and spitefully are not loyal; in spite of the fact they may adequately perform all their work responsibilities and hence manifest agency-loyalty.

Both the given statements are not inter-related.

Therefore, both Statement (I) and Statement (II) are individually true but Statement (II) is not the correct explanation of Statement (I)

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