Asked by Allieyah Jan Abuan on Sep 24, 2024
Verified
In a principal-agent relationship
A) the principal wants the agent to act on her own behalf
B) the agent wants the principal to act on his behalf
C) the principal wants the agent to act on the behalf of others
D) the agent wants the principal to act on the behalf of others
Principal-agent Relationship
A dynamic between a principal, who delegates tasks, and an agent, who performs tasks on the principal's behalf, often leading to issues related to alignment of interests.
- Comprehend the difference between the principal's and agent's interests within their relationship.
Verified Answer
JS
jameya scottabout 19 hours ago
Final Answer :
A
Explanation :
In a principal-agent relationship, the principal hires the agent to act on their behalf and make decisions that will benefit the principal's interests. Therefore, choice A) is the best option. Choices B) and D) are contradictory and don't make sense in this context, and choice C) is incorrect as the principal expects the agent to act for their benefit, not for others.
Learning Objectives
- Comprehend the difference between the principal's and agent's interests within their relationship.