Which One of the Following Statements Is TRUE

question 48

Multiple Choice

Which one of the following statements is TRUE?

• A) An agency relationship is when a principal hires an agent to perform a service and gives them decision-making authority.
• B) An agency relationship is when a principal works for an agent.
• C) In an agency relationship, the agent delegates authority to the principal.
• D) An example of an agency relationship is when the CEO nominates a slate of candidates to be on the board of directors.
• E) An example of an agency relationship is when a supervisor hires a forklift operator.
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Definitions:

Ethical Standards

Principles that govern the behavior of individuals and organizations, guiding conduct in a manner considered acceptable and right by societal or professional norms.

Competence

The ability to do something successfully or efficiently, often requiring specific knowledge, skills, or qualifications.

Objectivity

The principle of evaluating and presenting information in an unbiased manner, based on observable phenomena and facts, especially important in financial reporting and analysis.

Vision

A statement or idea about the future direction or objectives of an organization or individual.