Which of the Following Would Be Considered a Principal in the Principal-Agent

question 59

Multiple Choice

Which of the following would be considered a principal in the principal-agent relationship?

• A) A stockbroker in an investment arrangement.
• B) A real estate agent for someone buying a house.
• C) A customer leasing a car.
• D) An employer hiring an employee.

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Definitions:

Heuristics

Heuristics are mental shortcuts or rules of thumb that simplify decision making, often at the cost of accuracy or completeness.

Algorithms

Step-by-step procedures or formulas for solving problems or performing tasks.

Mnemonic Devices

Techniques used to help remember information, often through associations, patterns, or acronyms, facilitating easier retrieval from memory.

Algorithms

Step-by-step procedures or formulas for solving problems or completing tasks.