Scenario 22-1 Esteban and Michaela Own an Apartment Building. They Hire Nico

question 444

Multiple Choice

Scenario 22-1
Esteban and Michaela own an apartment building. They hire Nico to manage the building and deal with tenants' complaints. They also hire Ted to make any necessary repairs to the apartments or the common area and they hire Rex to be the door guard at night.
-Refer to Scenario 22-1. Which of the following statements is correct?

• A)If Rex falls asleep while he is supposed to be guarding the door, he has created an adverse selection problem.
• B)Esteban and Michaela are the principals and Nico, Ted, and Rex are the agents.
• C)Nico is the principal and Ted and Rex are the agents.
• D)All of the above are correct.

---

Definitions:

Pounds

In the imperial system, a measure of weight that equals approximately 0.453592 kilograms.

Fetal

Pertains to a stage of human development inside the womb, from conception until birth.

Proximodistal Pattern

A pattern of physical growth and motor control that proceeds from the center of the body outward, in which torso and arm development precede that of the hands and fingers.

Prenatal Development

Prenatal development encompasses the process of growth and development within the womb, from conception to birth.