Which of the Following Statements Is True of the Duty

question 4

Multiple Choice

Which of the following statements is true of the duty of loyalty?

• A) It requires agents to live up to the standards of performance expected of people in their occupation.
• B) It assigns an agent the duty to follow all reasonable and lawful instructions of a principal.
• C) It requires agents to keep accurate books that can be viewed by principals.
• D) It mandates that an agent act on behalf of one principal only to avoid conflicts of interest.

---

Definitions:

Quantity Discount

A reduction in price given to customers who purchase large volumes of a product, incentivizing bulk purchases.

Financing Charges

The costs associated with borrowing money, including interest, service charges, and any other fees designated by the lender.

List Price

The manufacturer's suggested retail price for a product, before any discounts or allowances.

Small Changes

Minor modifications or adjustments made to processes, products, or behaviors, often with the intention of improving efficiency, quality, or outcomes.