Agents Have a Fiduciary Duty to Their Principals

question 57

Multiple Choice

Agents have a fiduciary duty to their principals. Which of the following is TRUE with respect to the fiduciary duty?

• A) The fiduciary duty of an agent may be breached even in circumstances where the principal does not experience any loss as a result of the breach.
• B) The fiduciary duty of an agent is a duty to act in good faith and in the best interests of the principal.
• C) The fiduciary duty of an agent requires the agent to avoid conflicts between the interests of the principal and their personal interests.
• D) The fiduciary duty of an agent requires the agent to disclose to the principal any information that may be relevant to the principal's interests.
• E) All of the above.

---

Definitions:

Job Simplification

The process of breaking down jobs into simpler components or tasks to increase productivity and reduce employee stress.

Highly Standardized

Involving strict adherence to set norms and procedures, ensuring consistency and predictability.

Rubber Hoses

Typically refers to flexible tubes used to convey liquids or gases under pressure, but contextually unrelated to the other terms.

Car Assembling Plant

A facility dedicated to the manufacturing and assembly of automobiles, where various components are put together to build complete vehicles.