A Principal-Agent Relationship Is Created Between a Customer and a Bank

question 17

Multiple Choice

A principal-agent relationship is created between a customer and a bank:

• A) only if the customer deposits a check that the bank must collect for the customer
• B) any time the customer deposits an amount into the customer's checking account
• C) only when the customer writes a check against her account
• D) if the customer deposits a check that the bank must collect for the customer or if the customer writes a check against her account

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Definitions:

Objective Attainment

The process or strategy employed to achieve specific goals or targets set by an individual or organization.

Management By Objectives (MBO)

A strategic management model where objectives are defined by managers and employees to ensure that everyone is working towards common goals.

Subordinates

Employees or team members who are in a lower position or rank than others and typically report to a supervisor or manager.

Participation

The act of taking part or being involved in an activity, decision-making process, or event.