Which of the Following Statements Best Describes an Agent's Duty

question 54

Multiple Choice

Which of the following statements best describes an agent's duty of loyalty?

• A) It refers to a fiduciary duty an agent owes not to act adversely to the interests of the principal.
• B) It refers to a duty that an agent has to maintain an accurate accounting of all transactions undertaken on the principal's behalf.
• C) It refers to a duty that an agent owes to notify the principal of important information concerning the agency.
• D) It refers to a duty that an agent owes to meet the standards of reasonable care, skill, and diligence implicit in all contracts.

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Definitions:

Short-Run Equilibrium

A state in a market or economy where supply and demand are balanced but can change due to short-term fluctuations.

Economic Profit

The separation between a company's complete financial intake and its aggregate financial obligations, incorporating both definite and subtle costs.

Marginal Cost

The cost associated with the production of an additional unit of a product or service.